90-Days To A Million Dollar Government Contract..(Step-By-Step Formula!)

https://www.youtube.com/watch?v=wTzVxWcZgG4

[00:00] The United States government is the largest purchaser of goods and services in the world.
[00:04] But the United States government spent $10.1 trillion.
[00:08] Of that $10.1 trillion, $5 trillion was done through contracting efforts.
[00:12] The government sets a goal that 23% of every dollar must be spent with small businesses in some capacity.
[00:17] So, you're talking about right around 100,000 people that get to bust down a trillion dollars a year.
[00:22] Like small businesses are the lifeblood of our economy.
[00:24] One of the biggest myths with government contracting is people think the government pays slow, but they actually pay fast.
[00:30] Government contracting is the only business where everything is there's full transparency.
[00:34] It has to be because it's the government.
[00:36] Now, in my other company, we were already crossing eight figures doing strictly federal work.
[00:39] If you talk to most people that talk about government contracting, and I'm sure you've had people on here before talk about, and they all say, "ADA, you got to go get your ADA.
[00:48] ADA is the best thing in the world.
[00:49] Oh, if you want to get rich, you got to be ADA.
[00:51] Don't go get ADA.
[00:53] I'm telling y'all, don't go get ADA.
[00:55] All right?
[00:55] And he's like, "Well, how much do you want?"
[00:57] I was like, "I don't I don't know.
[00:59] Like I don't know what my business is worth."
[01:00] He was like, "Well, write it down on a piece of paper how much money you want."
[01:03] And you know, like I'm like, "All right, buddy."
[01:06] So, he's like, "All right, cool. We'll have it to you next week."
[01:08] I was like, "What?"
[01:11] Which is why I do acquisitions now.
[01:13] And I do acquisitions now so much better because I learned what not to do when I sold my business.
[01:17] A lot of times I get knocked because people like, "Oh, you make it sound so easy."
[01:21] Like, "No, it is that easy."
[01:23] Figure out who buys what you sell, how they buy what you sell, when they're going to buy it, and how you're going to sell it to them, and you're done.
[01:29] Love it.
[01:29] What are some of the common mistakes people make when bidding?
[01:38] Not getting help.
[01:39] All right. All right. All right, Hustle Fam.
[01:41] Hustle Fam, we are back with another amazing episode.
[01:43] And today I have a very, very, very special guest all the way from Miami, Florida.
[01:49] Man, this northeast weather must be killing you, brother.
[01:52] It's not good for my bones and my joints.
[01:58] Not at all, Mr. Kevin Jennings from GC Advising.
[02:00] What's up, sir?
[02:00] Oh, man. Thank you for having me.
[02:00] Man, I'm excited to
[02:02] you for having me.
[02:02] Man, I'm excited to talk to you today, man.
[02:03] You are here to talk about the topic that everybody in the Trucking Hustle audience is extremely interested about.
[02:10] Government Contracting, man.
[02:12] So, you run GC Advising.
[02:14] You've been in the government contracting space for how long now?
[02:16] Since 2009.
[02:20] So, it would be April of 2026 would be 17 years.
[02:24] Okay, 17 years.
[02:26] Wow, that's a long time, man.
[02:27] All right.
[02:29] So, so let let's get right into it, man.
[02:31] How did you get into government contracting?
[02:33] Yeah, cool.
[02:35] So, I started out my entrepreneurial career doing real estate back in early 2000s in in Miami.
[02:40] And I was real estate building homes, rehabbing, kind of like what everybody was doing in early 2000s.
[02:47] Doing great, you know, really, really enjoying the space.
[02:52] And then crash hit in 2008.
[02:55] And so, essentially I I lost everything, right?
[02:58] So, I kind of had to switch up my hustle.
[02:59] And I couldn't build houses.
[03:01] I couldn't rehab houses.
[03:03] Houses weren't moving.
[03:03] The
[03:03] Houses. Houses weren't moving.
[03:03] The houses that I had were now undervalued.
[03:05] Houses that I had were now undervalued.
[03:05] So, I ended up losing a lot of properties I had.
[03:07] So, I ended up losing a lot of properties I had.
[03:08] So, I just had to try to figure out a way to pivot.
[03:09] And I got turned on to government contracting because my father, who was prior military, he was an aircraft mechanic in the Navy.
[03:12] And I got turned on to government contracting because my father, who was prior military, he was an aircraft mechanic in the Navy.
[03:15] And then he went on to work for Eastern Airlines as an aircraft mechanic.
[03:16] He was an aircraft mechanic in the Navy.
[03:18] And then he went on to work for Eastern Airlines as an aircraft mechanic.
[03:19] He started doing government contracting in the late '90s.
[03:21] And what he was doing was he was working on military planes for the Coast Guard and the Air Force in in South Florida.
[03:23] And what he was doing was he was working on military planes for the Coast Guard and the Air Force in in South Florida.
[03:25] And so, he kind of told me about the whole process.
[03:27] He was like, "You should look into this."
[03:29] And so, I started looking into it, trying to figure out what it was.
[03:30] And then I I got into government contracting in 2009.
[03:32] April 2009 is when I started my first business in government contracting.
[03:33] And I started out doing just products.
[03:35] So, just toilet paper, paper towels, like general necessities that the government needed, but kind of like went under the radar.
[03:37] And so, that's how I got my start in in government contracting, and then just grew it from there.
[03:39] Okay.
[03:41] So, before real estate, what were you doing?
[03:43] Before 2009?
[03:45] Sports.
[03:47] Yeah, so I played football my
[04:04] Sports.
[04:04] Yeah, so I played football my whole life.
[04:06] And whole life.
[04:08] And I was one of those guys that was had all the talent to take it to the next level and be successful.
[04:12] My problem was I lost motivation and love for the game because I found a greater love for business and money.
[04:17] And so, my business entrepreneurial kind of start really started in college while playing sports.
[04:27] And so, what it was was I went to Florida A&M.
[04:27] So, shout out to all the Rattlers out there.
[04:30] And parties are a big thing at every HBCU, right?
[04:35] But down at FAMU, like we take it really serious, you know what I'm saying?
[04:38] And so,
[04:40] like we don't play when it comes to partying.
[04:42] So, that's kind of what I started in the music industry.
[04:45] I started promoting parties.
[04:46] And I started promoting artists.
[04:47] And then I actually started a Back then, that's when street teams were big, you know, prior to the internet.
[04:52] The way people got the music out there was with the street teams.
[04:55] And so, I started a whole street team and promotional company in Tallahassee.
[04:58] And we would break artists and stuff like that.
[04:59] So, that's kind of how I got my entre into business.
[05:01] And so, when I started getting into business and doing
[05:04] Started getting into business and doing that.
[05:06] That, football became like a football became like a.
[05:07] It was just a yeah, it was like, "Yeah, now I'm out of this."
[05:09] Cuz then it's like when you start thinking about the type of money that you can make actually playing football if you're not a one of the top 10% on a team, like you're not really making that much money, especially back then.
[05:11] When you start thinking about the type of money that you can make actually playing football if you're not a one of the top 10% on a team, like you're not really making that much money, especially back then.
[05:12] Of money that you can make actually playing football if you're not a one of the top 10% on a team, like you're not really making that much money, especially back then.
[05:13] Playing football if you're not a one of the top 10% on a team, like you're not really making that much money, especially back then.
[05:15] The top 10% on a team, like you're not really making that much money, especially back then.
[05:17] really making that much money, especially back then.
[05:19] So, back then we didn't have NIL and all that.
[05:21] I tell people all the time if I if NIL existed, you know, in the early 2000s, late '90s, a lot of people's story would be completely different because we'd have been able to be getting paid in college.
[05:22] Didn't have NIL and all that.
[05:25] I tell people all the time if I if NIL existed, you know, in the early 2000s, late '90s, a lot of people's story would be completely different because we'd have been able to be getting paid in college.
[05:28] A lot of people's story would be completely different because we'd have been able to be getting paid in college.
[05:29] Completely different because we'd have been able to be getting paid in college.
[05:31] So, then that whole process of, you know, living off of net checks and and and stealing fried chicken from the cafeteria to eat, like that wouldn't have been a thing if we was making money back then.
[05:33] So, then that whole process of, you know, living off of net checks and and and stealing fried chicken from the cafeteria to eat, like that wouldn't have been a thing if we was making money back then.
[05:34] So, but for me that, you know, it wasn't because it wasn't back then.
[05:36] So, when I got into business, it gave me that.
[05:38] And I was able to start making money and really understanding.
[05:39] And And I was like, "Yo, this is what I want to do."
[05:41] And funny story, I actually I actually got kicked out of business school at FAMU.
[05:43] And I got kicked out of business school because the dean of the business school told me I would never make it in business.
[05:44] And I didn't understand what she meant at the time, but
[05:46] So, when I got into business, it gave me that.
[05:48] And I was able to start making money and really understanding.
[05:49] And And I was like, "Yo, this is what I want to do."
[05:51] And funny story, I actually I actually got kicked out of business school at FAMU.
[05:54] And I got kicked out of business school because the dean of the business school told me I would never make it in business.
[05:55] And I didn't understand what she meant at the time, but
[05:57] And I got kicked out of business school.
[05:58] And I got kicked out of business school because the dean of the business school told me I would never make it in business.
[05:59] And I didn't understand what she meant at the time, but
[06:00] Business.
[06:01] And I didn't understand what she meant at the time, but
[06:03] And I didn't understand what she meant at the time, but
[06:05] at the time, but HBCUs are typically a large breeding.
[06:08] HBCUs are typically a large breeding ground for Fortune 500 companies for them to meet their DEI goals, you know?
[06:13] And so, companies like KPMG, they would come to FAMU, and they would recruit business professionals.
[06:20] And And then, the more business professionals at these schools sent to these Fortune 500s, the Fortune 500s would then make donations back to the school.
[06:29] And that's how HBCUs generated revenue was they would be able to send students to these to these good companies.
[06:34] The companies would give donations.
[06:36] I didn't fit the model of a student that could go work at one of those companies.
[06:41] Back then, I had dreads and gold teeth.
[06:43] I was like I was who I was.
[06:43] I was Dade County to the core.
[06:45] Like I was I was Miami, you know what I'm saying?
[06:49] So, and because I wasn't the best student, she was like, "You'll never make it in business."
[06:53] And like I said, it crushed me at the time.
[06:55] I was like, "What?"
[06:55] She kicked me out of business school.
[06:56] So, I ended up getting into engineering school, and that's what led to me being into the construction space doing real estate was getting kicked out of business school.
[07:02] So, then that fast forward, you know, 25 years later, 30 years later, here I am doing
[07:06] 30 years later, here I am doing business.
[07:07] Business.
[07:07] So, so so she How did she kick you out?
[07:09] So, so so she How did she kick you out the?
[07:09] No, I'll never forget.
[07:11] I Yo, the story's crazy.
[07:13] Yo, the story's crazy.
[07:13] I'll never forget it.
[07:14] Like I remember like it was yesterday, you know, God rest her soul, Dr. Sybil Mobley.
[07:17] She was the dean of the business school at FAMU.
[07:20] I had threw a party at this club called The Moon.
[07:23] So, anybody that knows Tallahassee, they know The Moon.
[07:25] The Moon is where everybody goes.
[07:27] It's big thing.
[07:27] It's Wednesdays and Saturdays.
[07:28] The Moon's crazy.
[07:29] I had threw a party at The Moon.
[07:31] And it had it had to have been a a Wednesday night party because this was the next day.
[07:35] I was in school.
[07:37] And I was in financial accounting.
[07:39] And we were going through, you know, balance sheets and how to do balances and things like that.
[07:44] And the teacher kept saying these things.
[07:45] And I'm like, "Yo, you're wrong."
[07:47] And I was like, "I couldn't take it no more.
[07:48] I was like, "You're wrong."
[07:49] She's like, "You don't know what you're talking about."
[07:50] I'm telling you you're wrong.
[07:52] And I was I felt so confident about the way she was doing it was incorrect because I had just balanced my books from the night before from doing this party.
[07:58] Because the way promoting works when you do parties, you do a party, you know, you get your ticket sales, your advance ticket sales, you get your door.
[08:04] Then if you got a a percentage of your bar, you got your bar percentage.
[08:06] So, every
[08:08] percentage.
[08:10] So, every morning after a party, I would go sit with the club owner.
[08:12] And we would go over the numbers from the night before.
[08:13] And we would reconcile our books.
[08:15] So, I'm like, "Yo, lady, I just did this an hour ago.
[08:17] I'm telling you what you're doing doesn't make sense."
[08:18] And she was like, "This is ridiculous.
[08:21] That's the last straw.
[08:22] I'm tired of you."
[08:23] And she was like, "Go to the dean's office."
[08:24] I go to the dean's office.
[08:25] And dean's like, "We can't keep having outbursts like this, Mr. Jennings.
[08:27] You'll never make it in business if you don't learn to shut up.
[08:29] And I just can't have you in my program."
[08:30] Because they have a at FAMU, they had a they have a 5-year MBA program through the business school.
[08:32] So, basically you come in and and they accelerate your business program so that you're able to get a five your MBA in five years.
[08:34] And that's one of the things that a lot of people get into.
[08:36] And she was like, "I'm kicking you out of the program because you you you're not going to make it.
[08:38] You're not a business person."
[08:39] I was like, "Damn, that's crazy."
[08:41] But it well, it worked out.
[08:42] Right.
[08:45] Right.
[08:46] Right.
[08:47] Okay.
[08:49] So, so you you left FAMU and you said you went to engineering school.
[08:50] So, what was the engineering What what was the civil engineering What What school was that?
[08:51] So, Florida A&M and FSU have a joint engineering school.
[08:53] So, I got into the
[09:10] engineering school.
[09:10] So, I got into the FAMU FSU engineering school.
[09:12] And then I FAMU FSU engineering school.
[09:12] And then I ended up leaving and transferring out right before I graduated.
[09:14] And I finished off at Florida International University in Miami, FIU.
[09:16] Okay, got it.
[09:18] But you're you're no longer playing ball at this point.
[09:20] Yeah, yeah.
[09:21] I was At that point I was done.
[09:23] I was like I was like, "Yo, I'm out of this."
[09:24] What's the highest level you made it to playing in football?
[09:26] So, out of college I went So, one of my best friends actually got drafted to the to the Cardinals the next year.
[09:27] And so, I went out there and was going to try to do the whole practice squad thing.
[09:29] And then when I'm going through that whole thing and I'm I'm learning about the money they're making, I'm like, "Yeah, no, I'm definitely not doing this."
[09:31] >> [laughter]
[09:32] >> That's right.
[09:34] That's right.
[09:36] Like at the time, league minimum was like I remember it was 326.
[09:38] So, it's like 326, then you got taxes, then you got attorneys, then you got lawyers, then you got agents, then you got
[09:39] And then then I learned that playing football was an actual year-round job.
[09:40] It wasn't like a just a seasonal thing for people to understand like you got to keep your body in shape.
[09:41] You got to eat the same way.
[09:43] You got to train.
[09:44] You got to do all these things.
[09:46] And then when you start doing the numbers it's like if you're not a top guy, you're literally playing football for just cuz
[10:12] Literally playing football for just cuz you love playing football.
[10:13] Like you're not creating a revenue playing football.
[10:15] Not creating a revenue playing football.
[10:17] Right. And then at the then I had started getting into real estate and I started making money.
[10:20] I'm like, hold on. So if I go out here and dedicate my entire year, I'm going to walk away with 100 maybe 150,000 dollars after everything said and done.
[10:30] I buy property. I can buy a duplex. I can renovate it, refinance, pull out 75,000, and rent it out and make 1,500 a month for the rest of my life.
[10:40] And I can do that four times in a year.
[10:41] I'm not the brightest guy, but 75 * 4 is a whole lot more than 150.
[10:45] Right.
[10:47] And then that for me that was it. That's all it took and I was like, yeah, I'm out of that.
[10:49] Got you. Got you. Got you. Okay, so you go to Florida A&M. You graduate from there.
[10:53] I didn't graduate. I got kicked out.
[10:55] No, I actually didn't. Okay, so you didn't graduate at all, but you did go to engineering school.
[11:00] Yep. Uh so you learned a few things. I learned a little.
[11:01] Bit. Yeah. And then you get into real estate. How do you get your start in real estate?
[11:04] Where did you get the money to to to begin that journey?
[11:07] So that's the dope thing. So anybody that knows real estate back in early 2000s, um they were doing so that's when the subprime mortgages were big. And
[11:13] the subprime mortgages were big.
[11:15] And that's when you could uh purchase homes that's when you could uh purchase homes with at a 110 105% of the market value.
[11:19] with at a 110 105% of the market value.
[11:20] So essentially not only were you could could you get
[11:21] not only were you could could you get homes with 0% down, but they would
[11:23] homes with 0% down, but they would actually give you money at closing.
[11:25] actually give you money at closing.
[11:25] So you could over-leverage your homes.
[11:27] you could over-leverage your homes.
[11:27] That's what caused the the crisis and
[11:29] That's what caused the the crisis and the and and the meltdown was because if
[11:31] the and and the meltdown was because if a home was worth 100,000 dollars, you
[11:33] a home was worth 100,000 dollars, you could get a mortgage for 110,000.
[11:35] could get a mortgage for 110,000.
[11:35] So back then you didn't need money to
[11:37] So back then you didn't need money to get into real estate.
[11:37] But how I got into
[11:39] get into real estate. But how I got into real estate and started doing it was
[11:41] real estate and started doing it was when I went back and I was uh working in
[11:43] when I went back and I was uh working in construction
[11:44] construction while I was going to engineering school.
[11:47] while I was going to engineering school.
[11:47] I would go to the to the roach coach,
[11:49] I would go to the to the roach coach, you know, the little lunch truck.
[11:50] you know, the little lunch truck.
[11:50] And all the guys would be talking like, oh
[11:52] all the guys would be talking like, oh yeah, we doing this.
[11:52] We just made this
[11:53] on this house. And what guys was doing
[11:54] on the construction site was they would
[11:55] on the construction site was they would partner up.
[11:57] partner up.
[11:57] So an electrician, a plumber, a tile
[11:59] So an electrician, a plumber, a tile guy, drywall guy, all four of them would
[12:01] guy, drywall guy, all four of them would get together.
[12:01] They'd all put in you
[12:03] get together. They'd all put in you know, five 10 grand a piece.
[12:05] know, five 10 grand a piece. They create a little company.
[12:07] a little company. They would buy a property and they would work on it
[12:08] property and they would work on it themselves on the weekend.
[12:08] And then
[12:10] themselves on the weekend. And then that's how guys back then was doing real
[12:12] that's how guys back then was doing real estate.
[12:12] So I was like, bet I could do
[12:13] estate. So I was like, bet I could do that.
[12:15] So then I got with four of my other friends and we started a company.
[12:17] Mhm.
[12:19] And then in our company was I was doing like drywall and stuff like that.
[12:21] I knew interior construction.
[12:23] Then another cat that was an electrician.
[12:24] Another cat that was a plumber.
[12:26] Then we had one dude that was more like a street dude.
[12:27] So he was like you know, the money behind everything.
[12:29] And then we had another dude who was a um he was a corrections officer at the time.
[12:31] So he had the he had the good job with the good credit.
[12:32] So the five of us came together.
[12:34] We all put a little bit of money in and then we started buying houses.
[12:36] And then that's how I started my that's how I started everything.
[12:37] That was like uh early 2004.
[12:39] All right.
[12:40] So you do that for about four or five years and you said in 2009 the market crashed.
[12:42] Well, 2008 >> 2008 yeah, so 2008 the market crashes.
[12:44] So I did I did real estate from uh 2004 all the way to 2008.
[12:45] In 2006 I started a a car dealership.
[12:47] So I started doing uh car sales and stuff in South Florida.
[12:49] Um and so I was doing cars and real estate all the way up to 2008.
[12:50] 2008 market started going down.
[12:52] Things started changing because now you couldn't buy the properties anymore.
[12:54] That's when the
[13:14] the properties anymore.
[13:16] That's when the defaults started coming.
[13:16] People started going to foreclosure and all that.
[13:17] So the market completely changed 2008.
[13:20] Um so 2008 2009 they were like the worst.
[13:23] That those were two years that kind of wiped out most people.
[13:26] >> Yeah.
[13:27] Because it's it's something that had never been seen before in America.
[13:30] So nobody knew what to do.
[13:31] Nobody knew how to handle it.
[13:33] The banks didn't even know what what was going on.
[13:35] They were just being hit with all these defaults.
[13:36] They didn't know what they were doing.
[13:37] And people were using straw buyers.
[13:39] Like it was so much stuff going on.
[13:42] It it it literally caused us to go into recession.
[13:44] Right.
[13:46] You know what I'm saying?
[13:47] So we we the whole country went into recession during that time.
[13:50] So for me that's when I was like, damn, I got to do something.
[13:51] So I'm like, what is what am I going to do?
[13:52] What am I going to do?
[13:53] So I'm I'm just researching everything.
[13:54] I'm trying to figure everything out.
[13:55] And then that's when I got turned on government contracting.
[13:58] And then my first job I ever did in government contracting
[14:00] like I said, I started with doing products.
[14:01] So I was selling toilet paper, paper towel, copy uh ink, hand sanitizer.
[14:03] I was selling products like that to local agencies, the VA, the Coast Guard, um TSA.
[14:16] Coast Guard, um TSA.
[14:17] And I was just selling them those products.
[14:18] And then um I'll never forget I was doing work at TSA.
[14:20] And they had like some minor like construction work they needed done.
[14:25] And I was telling them the camera like, yeah, I I used to do construction before I got into this.
[14:29] I was you know, doing houses.
[14:30] He's like, well, you think you could paint this office for us and do some I was like, yeah.
[14:33] So then I started doing what we call maintenance and alteration.
[14:36] So it's not real construction.
[14:38] It's just going in and and doing things like painting walls, patching drywall, fixing floors.
[14:44] So I started doing maintenance and alteration work.
[14:46] And then from there just just just snowballed up.
[14:49] So you start with small maintenance projects and you just keep going and going and eventually
[14:53] [sighs] snowballed out of control.
[14:53] And by 2014, 2015, you know, we were doing you know, seven eight figures a year in government contracting.
[15:02] Wow.
[15:02] Okay.
[15:02] Now is this with the same crew of guys you or did you kind of separate from them or you still work with some some of those guys?
[15:10] I still out of the out of the five of us by 2016 two of them were still working with me.
[15:17] two of them were still working with me.
[15:17] Okay.
[15:17] Okay.
[15:17] The other ones had kind of just went and just went off on their own thing.
[15:19] But by 2016 it was still three of us together.
[15:23] The one guy who was the the corrections officer guy, he went.
[15:25] You know, he was like, yeah, I'm just going back to my job.
[15:29] Right.
[15:29] And then of course the you know, my homeboy that was in the streets.
[15:31] He was like, yeah, I'm going back to the streets.
[15:33] Going back to [laughter] my job.
[15:35] So it was like so then it was just me and the other two who were technically we were the construction ones out of it.
[15:40] We was like, well, We going to keep doing this.
[15:41] So we just we just rode it out.
[15:43] We kept doing it.
[15:43] And um it was great.
[15:46] Like I said, we rode all the way up.
[15:47] And then in 2016 I opened another phase of my business which was underground utility construction.
[15:53] Okay.
[15:53] So I got into underground utility construction um and I started doing uh water and waste water infrastructure rehab.
[16:01] So that that became really really big back then because what started to happen was a lot of cities started going through what's called consent decree.
[16:08] So that's where the EPA comes into a city and they say that hey, your water levels are so poor that unless you make changes, we're going to essentially put elected
[16:18] going to essentially put elected officials in jail.
[16:19] officials in jail.
[16:22] And so that started happening to most cities.
[16:25] And if you do your research, most of your major cities in America
[16:26] right now are under some form of consent decree from the EPA.
[16:29] The water I hate to talk about it, but the water quality in most major cities in America
[16:32] is worse than sub-Saharan Africa. Mhm.
[16:37] Um and that's because of the different things that they do to try to treat the water.
[16:40] They actually make it a lot worse.
[16:41] And then they're unable to treat.
[16:43] You have a lot of sewage spills.
[16:45] Long story, but if you're familiar with like Flint, Michigan or Jackson, Mississippi,
[16:46] For sure. those are essentially um cases where it wasn't caught fast enough.
[16:51] Right. Because those aren't major.
[16:53] Those are like your sub cities.
[16:54] So those are the cities that don't get talked about.
[16:56] So they don't talk about Flint.
[16:58] And the EPA won't go to Flint.
[17:00] The EPA goes to Detroit.
[17:02] You know what I'm saying?
[17:03] And so that that that's kind of like what happened.
[17:05] So I got into underground utility construction.
[17:06] When I got into underground utility, that's kind of like what changed my life.
[17:07] Okay.
[17:08] Because then um essentially what happened was Miami-Dade County was under consent decree.
[17:12] And the EPA basically gave them
[17:19] And the EPA basically gave them um their consent decree worked out to like 17 billion dollars.
[17:24] 17 billion dollars.
[17:24] So anytime federal money comes into state and local governments, it's held to the same rules as federal procurement.
[17:34] So in federal contracting, 23% of every dollar that's spent has to go to small businesses.
[17:38] So when the EPA gives the money to the state and local, they say, hey, you also need to meet our small business goals.
[17:45] Um well, then when they do that, then they go out to the market and they try to find small businesses.
[17:50] So because I was doing so much federal work already at the time, I got called in by the SBA and other people and they said, this is about to happen in Miami and we need small businesses to help do the work.
[18:00] It was I never forget it was five of us that they took and we had a meeting at Cheesecake Factory.
[18:05] Right.
[18:05] And the five of us had a meeting at Cheesecake Factory and they started busting down all these numbers and they're telling us what's about to happen.
[18:11] And they're like, of you five, who wants to learn this game because you have to get into it because when the money hits the street, a percentage of it has to go to small.
[18:20] percentage of it has to go to small businesses.
[18:22] There aren't any small businesses.
[18:23] There aren't any small businesses out there that really do this highly specialized work.
[18:25] highly specialized work.
[18:26] So out of the five of us that sat there was like three out of the five was like, yeah, no, I'm good.
[18:29] And then me and one other person was like I was like cuz at the time you got to think 2016 I'm you know, 34 years old.
[18:38] Like I'm I'm still you know what I'm saying? Fairly young.
[18:41] So I'm like, yeah, whatever. I'll try it. Yeah.
[18:43] And um so I got into underground utility construction.
[18:45] And when they started telling me numbers, I was like, cool.
[18:48] And essentially 17 billion was coming down.
[18:51] Um 10% of that was their minimum goal.
[18:54] So their actual goal was 23, but they're like, we have to do at least 10.
[18:58] So that's a billion dollars.
[19:00] And of those billion dollars, there were only 10 companies in South Florida at the time that were qualified to do the work.
[19:05] And I owned two of them.
[19:07] Wow.
[19:08] So my lawyer was like, look, you need to do this.
[19:10] Just by [clears throat] default, you'll make 100 million dollars in the next five years.
[19:13] Just because there's only 10 of you.
[19:16] And it's just math.
[19:17] Yeah.
[19:19] If it's a billion dollars, there's 10 people. That's 100 million.
[19:20] million.
[19:20] He was like, you'll make 100 million dollars just by showing up.
[19:22] million dollars just by showing up.
[19:22] Right.
[19:22] So I was like, let's go.
[19:24] Right.
[19:24] So I was like, let's go.
[19:26] No doubt.
[19:26] It's a no-brainer.
[19:26] So that's
[19:28] No doubt.
[19:28] It's a no-brainer.
[19:28] So that's that's kind of like where my life and my
[19:29] that's kind of like where my life and my story really starts to evolve is
[19:31] story really starts to evolve is is I I started doing underground utility
[19:33] is I I started doing underground utility construction.
[19:33] And then um ended up you know, making the money that they said I would.
[19:36] construction.
[19:36] And then um ended up you know, making the money that they said I
[19:38] would.
[19:38] And essentially in 20 late 7 20
[19:40] 2017 late early 2018, I was actually
[19:43] 2017 late early 2018, I was actually acquired by a private equity fund.
[19:45] Oh, wow.
[19:45] Because I had amassed
[19:47] underground utility company?
[19:47] Yep.
[19:47] So within two years of me owning it, I
[19:48] So
[19:48] within two years of me owning it, I amassed essentially 100 million dollars
[19:50] worth of work and then I got bought by a
[19:52] amassed essentially 100 million dollars worth of work and then I got bought by a
[19:53] private equity firm who wanted to
[19:55] utilize my my contracts and
[19:59] and then that's when my story kind of
[20:00] went crazy.
[20:00] Okay.
[20:00] All right.
[20:00] So so
[20:02] what's really interesting here is you
[20:04] started out selling products Yep.
[20:04] and then you moved into a space that you
[20:06] didn't even really you weren't even
[20:08] really necessarily familiar with but it
[20:09] was an opportunity.
[20:09] Yep.
[20:09] So you learned
[20:10] it.
[20:10] Yep.
[20:10] And that was the underground uh
[20:12] utility What do you call it?
[20:12] You under
[20:15] Underground utility so it's
[20:17] Underground utility construction.
[20:19] Yeah.
[20:19] Okay.
[20:19] So
[20:23] utility construction. Yeah. Okay. So just just rewind just a little bit.
[20:24] just just rewind just a little bit. >> Yeah. When you got into the selling the
[20:26] >> Yeah. When you got into the selling the products, right? You said your dad was
[20:28] products, right? You said your dad was the one who kind of made you aware of
[20:30] the one who kind of made you aware of the opportunities in having the
[20:32] the opportunities in having the government as a customer.
[20:34] government as a customer. What was that process like? I mean was
[20:36] What was that process like? I mean was it was it a quick process during that
[20:38] it was it a quick process during that time for you? Like how what were there
[20:39] time for you? Like how what were there any What were the challenges in just
[20:41] any What were the challenges in just getting into becoming a vendor for the
[20:43] getting into becoming a vendor for the government at that time?
[20:44] government at that time? >> so it's crazy. So
[20:46] >> so it's crazy. So back then it was it was very difficult.
[20:49] back then it was it was very difficult. So like a lot of people think it's
[20:50] So like a lot of people think it's difficult now and I laugh and that's why
[20:52] difficult now and I laugh and that's why I love doing what I'm doing with
[20:53] I love doing what I'm doing with Government Cheese cuz I tell people like
[20:54] Government Cheese cuz I tell people like now y'all don't understand how easy you
[20:55] now y'all don't understand how easy you got You got the internet.
[20:57] got You got the internet. Like when I started in 2009 like the
[20:59] Like when I started in 2009 like the internet wasn't a thing. Like there was
[21:01] internet wasn't a thing. Like there was no YouTube where you can go watch how to
[21:03] no YouTube where you can go watch how to register on Sam. It back then it wasn't
[21:05] register on Sam. It back then it wasn't even Sam. It was FBO FedBizOpps. But
[21:07] even Sam. It was FBO FedBizOpps. But like you would have to go through the
[21:08] like you would have to go through the registration process. You would have to
[21:10] registration process. You would have to mail your paperwork in cuz email wasn't
[21:13] mail your paperwork in cuz email wasn't a thing. So you would have to mail a box
[21:16] a thing. So you would have to mail a box with all of your documentation in. Then
[21:18] with all of your documentation in. Then you would have to wait for them to send
[21:19] you would have to wait for them to send it back. So it was a it was a arduous
[21:21] it back. So it was a it was a arduous process back then. It probably took me a
[21:23] process back then. It probably took me a good six months just to get registered.
[21:25] good six months just to get registered. It's funny on the drive here I was
[21:26] It's funny on the drive here I was looking um
[21:28] looking um on fpds.gov. So with government
[21:31] on fpds.gov. So with government contracting you can actually look at
[21:33] contracting you can actually look at transaction history. And so I was just
[21:35] transaction history. And so I was just for you know, just giggles pulling up my
[21:37] for you know, just giggles pulling up my transaction history.
[21:38] transaction history. And I started my company in April of
[21:41] And I started my company in April of 2000 and
[21:42] 2000 and nine. My first recorded transaction on
[21:45] nine. My first recorded transaction on FPDS is March of 2010. Oh, wow. And then
[21:49] FPDS is March of 2010. Oh, wow. And then when I think about it I was like yeah
[21:50] when I think about it I was like yeah and it
[21:51] and it those transactions it only tracks
[21:53] those transactions it only tracks transactions over 15,000. So my first
[21:55] transactions over 15,000. So my first transaction over 15,000 was March 2010
[21:58] transaction over 15,000 was March 2010 with $16,667.
[22:00] with $16,667. Um and so prior to that like I was doing
[22:03] Um and so prior to that like I was doing little stuff and it took me a good six
[22:05] little stuff and it took me a good six months to actually get set up. Yeah. Now
[22:07] months to actually get set up. Yeah. Now now did you understand the space that
[22:09] now did you understand the space that you were getting into like the
[22:10] you were getting into like the opportunity and how big it was going to
[22:12] opportunity and how big it was going to become? Not even.
[22:13] become? Not even. Because the thing is is that even today
[22:16] Because the thing is is that even today government contracting isn't really
[22:18] government contracting isn't really understood by the masses.
[22:20] understood by the masses. And and what happens a lot of times
[22:22] And and what happens a lot of times especially in in black and brown
[22:23] especially in in black and brown communities is when you start to hear
[22:25] communities is when you start to hear the dollar figure, you're like yeah
[22:27] the dollar figure, you're like yeah that's not possible.
[22:28] that's not possible. And so I didn't really understand the
[22:30] And so I didn't really understand the magnitude when I got into it because
[22:33] magnitude when I got into it because you're talking numbers that I ain't
[22:34] you're talking numbers that I ain't never heard before and you're talking
[22:36] never heard before and you're talking about things that nobody that I know has
[22:38] about things that nobody that I know has ever done. So it's like it's not
[22:40] ever done. So it's like it's not realistic to me.
[22:42] realistic to me. So I was thinking very small.
[22:44] So I was thinking very small. All and so when I went to the SBA
[22:47] All and so when I went to the SBA because that's how I you know, learned I
[22:48] because that's how I you know, learned I went to the made a meeting with the SBA,
[22:50] went to the made a meeting with the SBA, went to SCORE, sat with them and they
[22:52] went to SCORE, sat with them and they talked to you about it and they talked
[22:53] talked to you about it and they talked about certification programs and how to
[22:55] about certification programs and how to use them and all these different things.
[22:58] use them and all these different things. And when I go there and talk to them
[22:59] And when I go there and talk to them even they weren't really talking about
[23:01] even they weren't really talking about the magnitude. They would say yeah you
[23:02] the magnitude. They would say yeah you can do this. You can make a million
[23:03] can do this. You can make a million dollars doing this. And you're like okay
[23:06] dollars doing this. And you're like okay that's cool. But when you learn the
[23:07] that's cool. But when you learn the numbers you learn that there's only
[23:08] numbers you learn that there's only 61,000 registered small businesses to do
[23:11] 61,000 registered small businesses to do that do business with the government.
[23:12] that do business with the government. There's 36 million small businesses in
[23:14] There's 36 million small businesses in America but only 61,000 are registered
[23:16] America but only 61,000 are registered to do business with government. And with
[23:18] to do business with government. And with just small businesses they spent a
[23:19] just small businesses they spent a hundred eighty-three billion dollars
[23:21] hundred eighty-three billion dollars last year.
[23:22] last year. So it's like oh yeah you can make a
[23:23] So it's like oh yeah you can make a million dollars but the reality is you
[23:25] million dollars but the reality is you make three to five million just by being
[23:26] make three to five million just by being registered. Mhm. And I didn't understand
[23:29] registered. Mhm. And I didn't understand that at the time cuz even they didn't
[23:31] that at the time cuz even they didn't understand it cuz the numbers was it it
[23:33] understand it cuz the numbers was it it just was unfathomable numbers.
[23:35] just was unfathomable numbers. Um but it it it happened really fast.
[23:38] Um but it it it happened really fast. Yeah. Yeah. Now when you when you were
[23:40] Yeah. Yeah. Now when you when you were selling those products, how did you did
[23:42] selling those products, how did you did were you buying these products up front
[23:44] were you buying these products up front >> No, that's the crazy thing. So the
[23:46] >> No, that's the crazy thing. So the product story I got is even crazier
[23:47] product story I got is even crazier story.
[23:48] story. >> [snorts]
[23:48] >> [snorts] >> So
[23:50] >> So All right. Rewind. Remember I told you
[23:53] All right. Rewind. Remember I told you I lost everything in 2008, right? Like
[23:55] I lost everything in 2008, right? Like everybody in America. For sure. Right? I
[23:58] everybody in America. For sure. Right? I tell people all the time is the funny
[24:00] tell people all the time is the funny joke about it is I was bankrupt but I
[24:02] joke about it is I was bankrupt but I technically did not have to file
[24:03] technically did not have to file bankruptcy because all the people I owed
[24:05] bankruptcy because all the people I owed money to were also bankrupt. [laughter]
[24:07] money to were also bankrupt. [laughter] We all bankrupt so Right? So it's like
[24:09] We all bankrupt so Right? So it's like it is what it is, right? Yeah.
[24:11] it is what it is, right? Yeah. Technically a wash at the time. And so I
[24:14] Technically a wash at the time. And so I didn't have anything. I didn't have any
[24:15] didn't have anything. I didn't have any credit. I didn't have any money.
[24:17] credit. I didn't have any money. So the way I did it which is a strategy
[24:19] So the way I did it which is a strategy that I teach to a lot of people it is I
[24:20] that I teach to a lot of people it is I leverage net 30 vendor accounts. So we
[24:23] leverage net 30 vendor accounts. So we all now a lot of people know about
[24:24] all now a lot of people know about business credit and you know, how to you
[24:26] business credit and you know, how to you know, get your Dun & Bradstreet number,
[24:27] know, get your Dun & Bradstreet number, how to register, take your EIN and your
[24:29] how to register, take your EIN and your DUNS. You go to people that offer net 30
[24:31] DUNS. You go to people that offer net 30 vendor accounts like Quill, Grainger,
[24:33] vendor accounts like Quill, Grainger, Staples. Um and that's what I did. So
[24:36] Staples. Um and that's what I did. So essentially doing products for the
[24:37] essentially doing products for the government is a very simple process. You
[24:40] government is a very simple process. You get registered with the government. At
[24:42] get registered with the government. At that time then you just go get net 30
[24:45] that time then you just go get net 30 vendor accounts. So Quill, Staples,
[24:47] vendor accounts. So Quill, Staples, Grainger, your basic ones. Look for
[24:49] Grainger, your basic ones. Look for products that those companies sell and
[24:51] products that those companies sell and then resell those products to the
[24:53] then resell those products to the government.
[24:54] government. One of the biggest myths with government
[24:56] One of the biggest myths with government contracting is people think the
[24:57] contracting is people think the government pays slow but they actually
[24:58] government pays slow but they actually pay fast. So in federal procurement it's
[25:01] pay fast. So in federal procurement it's then called the Prompt Payment Act. So
[25:03] then called the Prompt Payment Act. So the Prompt Payment Act states that any
[25:05] the Prompt Payment Act states that any small business has to be paid within 15
[25:08] small business has to be paid within 15 days of an approved invoice. So that
[25:10] days of an approved invoice. So that means from the time you do business with
[25:12] means from the time you do business with them if you submit an invoice and it's
[25:13] them if you submit an invoice and it's approved the date it's approved they
[25:15] approved the date it's approved they have to pay you within 15 days. If they
[25:17] have to pay you within 15 days. If they don't pay you within 15 days then you're
[25:19] don't pay you within 15 days then you're eligible for interest.
[25:21] eligible for interest. Okay? And a lot of people don't know
[25:22] Okay? And a lot of people don't know that. So once I learned that I used the
[25:24] that. So once I learned that I used the Prompt Payment Act to my benefit. So
[25:26] Prompt Payment Act to my benefit. So they would they would give me a purchase
[25:28] they would they would give me a purchase order to buy something. Just say it's
[25:31] order to buy something. Just say it's January 1st I get the purchase order.
[25:33] January 1st I get the purchase order. I would place the order with Grainger.
[25:35] I would place the order with Grainger. Grainger would give me till January 30th
[25:37] Grainger would give me till January 30th to pay.
[25:38] to pay. Right? I would have it drop shipped and
[25:40] Right? I would have it drop shipped and delivered directly to the client
[25:42] delivered directly to the client directly to the government. They would
[25:43] directly to the government. They would receive it on say January 10th.
[25:46] receive it on say January 10th. I put my invoice in on January 10th.
[25:48] I put my invoice in on January 10th. They have to pay me in 15 days. I get
[25:50] They have to pay me in 15 days. I get paid by January 25th.
[25:52] paid by January 25th. January 25th I take the money they pay
[25:54] January 25th I take the money they pay me.
[25:55] me. I pay Grainger. I keep the difference.
[25:58] I pay Grainger. I keep the difference. And that's how I started and that's how
[25:59] And that's how I started and that's how I do it and that's how I teach anybody
[26:01] I do it and that's how I teach anybody to start in government contracting. If
[26:02] to start in government contracting. If you don't have any money, that's how you
[26:03] you don't have any money, that's how you start in government contracting. You can
[26:04] start in government contracting. You can literally start in government
[26:05] literally start in government contracting with no money. Now how you
[26:08] contracting with no money. Now how you scale that's where being a business
[26:10] scale that's where being a business person and being an astute individual
[26:13] person and being an astute individual because now when you make that money now
[26:15] because now when you make that money now what do you do with that money? Right.
[26:16] what do you do with that money? Right. How do you compound it and continue to
[26:18] How do you compound it and continue to do it? And so that's what I was able to
[26:19] do it? And so that's what I was able to do. Now how did how did you know what to
[26:22] do. Now how did how did you know what to mark the products how to mark the
[26:23] mark the products how to mark the products up in order for you to make
[26:25] products up in order for you to make some money? So that's the great thing.
[26:26] some money? So that's the great thing. Government contracting is the only
[26:28] Government contracting is the only business where everything is there's
[26:30] business where everything is there's full transparency. It has to be because
[26:32] full transparency. It has to be because the government. So you can utilize sites
[26:34] the government. So you can utilize sites like fpds.gov, usaspending.gov and you
[26:37] like fpds.gov, usaspending.gov and you can research past data on product sales.
[26:41] can research past data on product sales. So literally back then we didn't have
[26:43] So literally back then we didn't have usaspending so you would have to do
[26:44] usaspending so you would have to do what's called a FOIA. So we all as
[26:47] what's called a FOIA. So we all as Americans we have what's called the
[26:48] Americans we have what's called the Freedom of Information. So you can do a
[26:50] Freedom of Information. So you can do a FOIA which is a Freedom of Information
[26:51] FOIA which is a Freedom of Information Act. So you can FOIA the government and
[26:53] Act. So you can FOIA the government and ask them how much they paid for
[26:55] ask them how much they paid for anything.
[26:57] anything. Because you as a tax paying citizen of
[26:58] Because you as a tax paying citizen of America it's actually your money. So you
[27:00] America it's actually your money. So you have every right to understand how your
[27:02] have every right to understand how your money is spent.
[27:03] money is spent. So back then when there was no internet
[27:05] So back then when there was no internet I would literally just FOIA what they
[27:07] I would literally just FOIA what they bought. I would send a FOIA request to
[27:09] bought. I would send a FOIA request to whatever agency and say how much did you
[27:11] whatever agency and say how much did you pay for toilet paper in 20
[27:14] pay for toilet paper in 20 in 2008. They would say in 2008 we paid
[27:16] in 2008. They would say in 2008 we paid XYZ for toilet paper.
[27:18] XYZ for toilet paper. And then I would it would tell me the
[27:19] And then I would it would tell me the quantity that they purchased, how much
[27:21] quantity that they purchased, how much they paid for it. Then I would just
[27:23] they paid for it. Then I would just research and say okay if they were
[27:24] research and say okay if they were paying five dollars a roll, I know that
[27:26] paying five dollars a roll, I know that a roll cost three dollars.
[27:28] a roll cost three dollars. So it's a two dollar markup. So now when
[27:29] So it's a two dollar markup. So now when I bid, I bid
[27:31] I bid, I bid four dollars and fifty cents. Yeah. So
[27:33] four dollars and fifty cents. Yeah. So now I undercut the previous person but I
[27:35] now I undercut the previous person but I still make a dollar fifty.
[27:37] still make a dollar fifty. That's how I did it. But now it's even
[27:38] That's how I did it. But now it's even easier cuz you literally just I can go
[27:40] easier cuz you literally just I can go on the internet right now on
[27:41] on the internet right now on usaspending.gov and I can figure out
[27:43] usaspending.gov and I can figure out what they paid last week because the
[27:45] what they paid last week because the data updates so fast. Back when I was
[27:47] data updates so fast. Back when I was doing it, you know, data wasn't updating
[27:49] doing it, you know, data wasn't updating that fast. Who gave you that strategy at
[27:51] that fast. Who gave you that strategy at that time?
[27:53] that time? Did you just learn it or did somebody
[27:54] Did you just learn it or did somebody tell you about it or When I went to the
[27:56] tell you about it or When I went to the SBA and talked to to SCORE they kind of
[27:58] SBA and talked to to SCORE they kind of gamed me on how to do your research with
[28:01] gamed me on how to do your research with pricing.
[28:02] pricing. And then once you learn it then you
[28:03] And then once you learn it then you learn about how to you know, how
[28:05] learn about how to you know, how inflation takes place. So one of the
[28:06] inflation takes place. So one of the great things about
[28:08] great things about the government is they never pay less
[28:10] the government is they never pay less than they paid before. So the government
[28:13] than they paid before. So the government has something called use it or lose it.
[28:15] has something called use it or lose it. So meaning once they get an amount of
[28:17] So meaning once they get an amount of money in their coffers to spend, they
[28:19] money in their coffers to spend, they have to spend that amount or they won't
[28:22] have to spend that amount or they won't get that amount next year.
[28:23] get that amount next year. But then every year they increase how
[28:25] But then every year they increase how much they get based on inflation.
[28:28] much they get based on inflation. That that's what stops people from
[28:30] That that's what stops people from essentially going backwards in life.
[28:32] essentially going backwards in life. So if the cost and we all know the cost
[28:34] So if the cost and we all know the cost of the dollar goes down every year
[28:35] of the dollar goes down every year because of inflation. So you know, three
[28:37] because of inflation. So you know, three to six percent depending on what's going
[28:38] to six percent depending on what's going on in the world.
[28:39] on in the world. So every year your contract value is
[28:41] So every year your contract value is going to raise three to six percent
[28:43] going to raise three to six percent depending on what's going on in the
[28:44] depending on what's going on in the world at a minimum. So then I just
[28:46] world at a minimum. So then I just learned how to start forecasting based
[28:49] learned how to start forecasting based on those numbers. Wow. Okay. And so
[28:52] on those numbers. Wow. Okay. And so you're selling you're selling multiple
[28:54] you're selling you're selling multiple products. So like so just to for so
[28:56] products. So like so just to for so people could understand like let's say
[28:57] people could understand like let's say you're selling toilet paper, right?
[28:59] you're selling toilet paper, right? You're selling toilet paper to who?
[29:01] You're selling toilet paper to who? [snorts] Who would that be? I was
[29:02] [snorts] Who would that be? I was selling toilet paper to the VA hospital.
[29:04] selling toilet paper to the VA hospital. I was selling hand sanitizer to TSA. Um
[29:07] I was selling hand sanitizer to TSA. Um back then I don't know if you remember
[29:09] back then I don't know if you remember when you had to go through TSA back then
[29:11] when you had to go through TSA back then that was that's when you had to take
[29:12] that was that's when you had to take your shoes off. So then they would have
[29:14] your shoes off. So then they would have the little booties there that you could
[29:15] the little booties there that you could put on so you could walk through. I was
[29:17] put on so you could walk through. I was selling the little booties. I was
[29:18] selling the little booties. I was selling latex gloves to TSA. Uh Coast
[29:21] selling latex gloves to TSA. Uh Coast Guard. I was selling rope to the Coast
[29:23] Guard. I was selling rope to the Coast Guard to like tie up the boats. Just
[29:26] Guard to like tie up the boats. Just anything they want. They they buy
[29:27] anything they want. They they buy everything. And these are all separate
[29:29] everything. And these are all separate contracts that you're being awarded They
[29:31] contracts that you're being awarded They [clears throat] were all one time
[29:33] [clears throat] were all one time individual. I was actually getting paid
[29:34] individual. I was actually getting paid on credit card. So I was actually
[29:36] on credit card. So I was actually bucking the system with the Prompt
[29:38] bucking the system with the Prompt Payment Act.
[29:39] Payment Act. Because back then so there's a thing
[29:41] Because back then so there's a thing called the Simplified Acquisition
[29:43] called the Simplified Acquisition Threshold and the Micro-Purchase
[29:44] Threshold and the Micro-Purchase Threshold.
[29:46] Threshold. So currently in today the micro purchase
[29:48] So currently in today the micro purchase threshold is $10,000. What that means is
[29:50] threshold is $10,000. What that means is that every government employee has a
[29:52] that every government employee has a government purchase card.
[29:54] government purchase card. And today, they can spend up to $10,000
[29:56] And today, they can spend up to $10,000 a day on their government purchase card
[29:58] a day on their government purchase card without having to go through a
[30:00] without having to go through a contracting process.
[30:01] contracting process. Back when I was doing it, it was 1,500.
[30:04] Back when I was doing it, it was 1,500. So, essentially, they would buy $1,500
[30:06] So, essentially, they would buy $1,500 worth of supplies every day. And they
[30:08] worth of supplies every day. And they would pay me on credit card. They would
[30:10] would pay me on credit card. They would They would pay me on credit card. I
[30:11] They would pay me on credit card. I would get paid in like 3 days.
[30:13] would get paid in like 3 days. By the time the processing went through.
[30:14] By the time the processing went through. So, I was actually bucking the whole
[30:16] So, I was actually bucking the whole 30-day system. And that's how I was able
[30:17] 30-day system. And that's how I was able to to grow so fast.
[30:20] to to grow so fast. The good thing about then was even still
[30:23] The good thing about then was even still today, government contracting is a
[30:24] today, government contracting is a personable business. Like it's very
[30:26] personable business. Like it's very relationship based.
[30:27] relationship based. Back then, without having the internet,
[30:30] Back then, without having the internet, they couldn't search for a bunch of
[30:32] they couldn't search for a bunch of other small businesses.
[30:34] other small businesses. So, it was kind of like the squeaky
[30:35] So, it was kind of like the squeaky wheel got the oil. So, I just stayed in
[30:37] wheel got the oil. So, I just stayed in front of all the agencies that were
[30:39] front of all the agencies that were close to me. And I made friends with all
[30:40] close to me. And I made friends with all those people. And then they were just
[30:42] those people. And then they were just buying from me on a consistent basis.
[30:44] buying from me on a consistent basis. People always ask like, "Well, why don't
[30:45] People always ask like, "Well, why don't they buy from you? Why don't they just
[30:47] they buy from you? Why don't they just place the order themselves?"
[30:49] place the order themselves?" If they did that, then our our economy
[30:51] If they did that, then our our economy wouldn't generate. Like small businesses
[30:54] wouldn't generate. Like small businesses are the lifeblood of our economy because
[30:56] are the lifeblood of our economy because money comes to us as small businesses.
[30:58] money comes to us as small businesses. We employ
[30:59] We employ the employees. The money goes back into
[31:01] the employees. The money goes back into the economy. I pay taxes. They pay
[31:03] the economy. I pay taxes. They pay taxes. It's the It's the whole circle of
[31:05] taxes. It's the It's the whole circle of life. If they don't operate with
[31:08] life. If they don't operate with business, there's no circle of life. And
[31:10] business, there's no circle of life. And so, it government contracting has to
[31:12] so, it government contracting has to take place. If they can't just go buy
[31:14] take place. If they can't just go buy things themselves from people. Yeah.
[31:16] things themselves from people. Yeah. Yeah. Now, were these contracts on the
[31:17] Yeah. Now, were these contracts on the state level like local or were they
[31:20] state level like local or were they federal?
[31:20] federal? >> So, when I first started, I was 100%
[31:22] >> So, when I first started, I was 100% federal when I started. Okay. Um I
[31:24] federal when I started. Okay. Um I started going state and local when I got
[31:26] started going state and local when I got into underground utility because
[31:28] into underground utility because underground utility is done at the state
[31:30] underground utility is done at the state and local level. Um but for the for the
[31:32] and local level. Um but for the for the first, you know,
[31:34] first, you know, 5 6 years of my career, it was all
[31:36] 5 6 years of my career, it was all federal. Yeah. Okay. Now, did you have
[31:38] federal. Yeah. Okay. Now, did you have any certifications or anything at this
[31:39] any certifications or anything at this time? At the time, no. I was just a
[31:41] time? At the time, no. I was just a small business. I eventually got
[31:42] small business. I eventually got HUBZone, which is my favorite cert. Um I
[31:45] HUBZone, which is my favorite cert. Um I eventually got HUBZone, but I was just
[31:47] eventually got HUBZone, but I was just small business. And then when I um
[31:50] small business. And then when I um I want to say like 2016, maybe 2014,
[31:54] I want to say like 2016, maybe 2014, when I was uh getting ready to branch
[31:56] when I was uh getting ready to branch into underground utility, um my father
[31:59] into underground utility, um my father came and started working with me. And
[32:00] came and started working with me. And then I I actually sold him my original
[32:02] then I I actually sold him my original company when I started underground
[32:04] company when I started underground utility. And then that's when um we got
[32:06] utility. And then that's when um we got veteran status.
[32:07] veteran status. Okay. Got it. So, you So, okay. So, once
[32:10] Okay. Got it. So, you So, okay. So, once you started doing under
[32:13] Once you started doing the underground
[32:15] Once you started doing the underground utility, uh you you stopped doing the
[32:17] utility, uh you you stopped doing the products. I stopped doing the products
[32:19] products. I stopped doing the products and regular construction.
[32:20] and regular construction. >> your father that company.
[32:21] >> your father that company. >> Yeah. Okay. Okay. Got it. All right. So,
[32:23] >> Yeah. Okay. Okay. Got it. All right. So, you moved to underground utility. Uh and
[32:25] you moved to underground utility. Uh and how long do you run that business?
[32:27] how long do you run that business? Literally, 2 years and then I got
[32:28] Literally, 2 years and then I got bought. Okay.
[32:30] bought. Okay. For 2 years.
[32:31] For 2 years. 2 years and I got bought out. Okay. And
[32:34] 2 years and I got bought out. Okay. And then somebody comes in. They say, "We
[32:35] then somebody comes in. They say, "We want this contract." And then they buy
[32:37] want this contract." And then they buy you out. It was a It was my competitor.
[32:39] you out. It was a It was my competitor. So, I went to a Once again, like all
[32:41] So, I went to a Once again, like all these different stories in my life, I
[32:42] these different stories in my life, I remember them so vividly.
[32:44] remember them so vividly. Um I went to a a pre-bid meeting. So,
[32:48] Um I went to a a pre-bid meeting. So, you know, in government contracting
[32:49] you know, in government contracting before when they put a solicitation out,
[32:51] before when they put a solicitation out, specifically in industries like
[32:52] specifically in industries like construction, but they'll do it in
[32:53] construction, but they'll do it in different ones as well. Um they'll do a
[32:56] different ones as well. Um they'll do a pre-bid meeting to where they'll let
[32:57] pre-bid meeting to where they'll let everybody who's interested in bidding
[32:59] everybody who's interested in bidding come down. It allows you a time to ask
[33:01] come down. It allows you a time to ask questions to see whatever it is that
[33:03] questions to see whatever it is that they want to be done. And and and so, I
[33:06] they want to be done. And and and so, I went to a pre-bid meeting and
[33:09] went to a pre-bid meeting and one thing about me is I'm a I'm a
[33:11] one thing about me is I'm a I'm a hands-on owner. Even today in my
[33:13] hands-on owner. Even today in my businesses I own, like I'm hands-on.
[33:16] businesses I own, like I'm hands-on. Like I got boots on. I'm in the business
[33:17] Like I got boots on. I'm in the business every day. I'm not one of them guys that
[33:19] every day. I'm not one of them guys that just sits back. I can, but it's just not
[33:21] just sits back. I can, but it's just not my nature. You feel me? So,
[33:23] my nature. You feel me? So, I would go to these pre-bid meetings.
[33:25] I would go to these pre-bid meetings. And so, one day I went to this one
[33:26] And so, one day I went to this one pre-bid meeting in Bay Harbor Island.
[33:29] pre-bid meeting in Bay Harbor Island. And uh I'm there. And it's like five or
[33:31] And uh I'm there. And it's like five or six of us there. And the thing with
[33:32] six of us there. And the thing with government contracting, it's a very
[33:34] government contracting, it's a very small community. Like I said, there's 36
[33:35] small community. Like I said, there's 36 million uh small businesses in America,
[33:38] million uh small businesses in America, but only 61,000 registered.
[33:40] but only 61,000 registered. So, when you do government contracting,
[33:41] So, when you do government contracting, you know the guys in your area that do
[33:43] you know the guys in your area that do what you do. It's not like it's a big
[33:45] what you do. It's not like it's a big pool of competition.
[33:47] pool of competition. So, it's like five of us there. I know
[33:48] So, it's like five of us there. I know all the guys. We all joke. We laugh. We
[33:50] all the guys. We all joke. We laugh. We talk. But then there's this one guy
[33:51] talk. But then there's this one guy there. He's got like a three-piece suit
[33:52] there. He's got like a three-piece suit on. Now, mind you, we're doing
[33:53] on. Now, mind you, we're doing underground utility construction. So,
[33:55] underground utility construction. So, we're doing sewer rehab. So, we're
[33:56] we're doing sewer rehab. So, we're literally popping manholes, looking at
[33:58] literally popping manholes, looking at poop and roaches. And this guy's got a
[33:59] poop and roaches. And this guy's got a three-piece suit on. Right.
[34:01] three-piece suit on. Right. >> In Miami in the summer.
[34:02] >> In Miami in the summer. >> [laughter]
[34:03] >> [laughter] >> And so, I'm looking at I'm looking at
[34:04] >> And so, I'm looking at I'm looking at dog. I'm like, "What's up with bro? He
[34:05] dog. I'm like, "What's up with bro? He don't belong here."
[34:07] don't belong here." And so, I'm talking to him like, "So,
[34:08] And so, I'm talking to him like, "So, what's up with you?" And he's like, "Oh,
[34:10] what's up with you?" And he's like, "Oh, hey. What's up, man?" He's talking.
[34:12] hey. What's up, man?" He's talking. I'm like, "So, what you doing here?"
[34:14] I'm like, "So, what you doing here?" He's like, "Oh, well, you know, I just
[34:16] He's like, "Oh, well, you know, I just bought, you know, XYZ company." He's
[34:18] bought, you know, XYZ company." He's like, "You know him?" I'm like, "Yeah, I
[34:19] like, "You know him?" I'm like, "Yeah, I know him." I was like, "Damn, I didn't
[34:20] know him." I was like, "Damn, I didn't know he sold." He's like, "Yeah, we
[34:21] know he sold." He's like, "Yeah, we bought him out. And so, I'm trying to
[34:23] bought him out. And so, I'm trying to learn everything about it. And so, I'm
[34:25] learn everything about it. And so, I'm trying to really understand the
[34:26] trying to really understand the business." I'm like, "That's cool." So,
[34:27] business." I'm like, "That's cool." So, we go on the whole site visit. We
[34:28] we go on the whole site visit. We walking. We walking. He's talking to me.
[34:30] walking. We walking. He's talking to me. He's like, "So, you know, how do you
[34:32] He's like, "So, you know, how do you think this going to go?" I said, "Well,
[34:33] think this going to go?" I said, "Well, when I win, I'm going to do it like this
[34:34] when I win, I'm going to do it like this this this. I'm going to do this." He's
[34:35] this this. I'm going to do this." He's like,
[34:36] like, >> [laughter]
[34:36] >> [laughter] >> "What do you mean when you win? How How
[34:37] >> "What do you mean when you win? How How do you know you're going to win?" I was
[34:38] do you know you're going to win?" I was like,
[34:39] like, "What do you Everybody knows I'm going
[34:40] "What do you Everybody knows I'm going to win. Like everybody here knows. We're
[34:42] to win. Like everybody here knows. We're just all here cuz I'm like, you see
[34:44] just all here cuz I'm like, you see him?" He's like, "Yeah, I know him." "He
[34:45] him?" He's like, "Yeah, I know him." "He just won the last three bids. So, he's
[34:47] just won the last three bids. So, he's only got two good crews. So, he can't do
[34:49] only got two good crews. So, he can't do this cuz he ain't got the people to do
[34:50] this cuz he ain't got the people to do it. You see him? The product that they
[34:52] it. You see him? The product that they want installed, he can't do that
[34:54] want installed, he can't do that product. So, he ain't going to win." I
[34:55] product. So, he ain't going to win." I was like, "You see him and him? They're
[34:57] was like, "You see him and him? They're just here cuz they ain't have nothing to
[34:58] just here cuz they ain't have nothing to do today."
[34:59] do today." >> [laughter]
[35:00] >> [laughter] >> I'm like, "So, when I win, I'm going to
[35:03] >> I'm like, "So, when I win, I'm going to do the job like this this this this and
[35:04] do the job like this this this this and this." Right. And he laughs. And I'm
[35:06] this." Right. And he laughs. And I'm like, I I He thought I was joking. Lo
[35:08] like, I I He thought I was joking. Lo and behold, like the bid comes out 2
[35:09] and behold, like the bid comes out 2 weeks later. I win.
[35:11] weeks later. I win. So, I'm in my office one day and I get
[35:12] So, I'm in my office one day and I get this phone call. This guy's like, "Hey,
[35:14] this phone call. This guy's like, "Hey, you remember me?" I'm like, "Yeah,
[35:15] you remember me?" I'm like, "Yeah, what's up?" He's like,
[35:17] what's up?" He's like, "I can't believe you won." I was like,
[35:19] "I can't believe you won." I was like, "Why? [laughter] Why can't you believe?"
[35:21] "Why? [laughter] Why can't you believe?" I was like, "Bro, I told you I was going
[35:22] I was like, "Bro, I told you I was going to win." Right. He was like, "I want to
[35:24] to win." Right. He was like, "I want to take you to lunch." I was like, "All
[35:26] take you to lunch." I was like, "All right. Cool." So, I go to lunch with
[35:29] right. Cool." So, I go to lunch with him. We're talking. I'm like, "So,
[35:30] him. We're talking. I'm like, "So, what's up?" And he's like,
[35:32] what's up?" And he's like, "Have you ever thought about selling
[35:33] "Have you ever thought about selling your company?" I'm like, "No."
[35:35] your company?" I'm like, "No." He's like, "I did a little research and
[35:37] He's like, "I did a little research and and
[35:38] and not only did you win the bid that I
[35:39] not only did you win the bid that I wanted to win,
[35:41] wanted to win, but you've won all this other work."
[35:42] but you've won all this other work." He's like, "What's your plan?" I was
[35:44] He's like, "What's your plan?" I was like, "Shit, I don't know." I ain't
[35:45] like, "Shit, I don't know." I ain't really got no plan cuz I was literally
[35:46] really got no plan cuz I was literally probably like a week or two prior to
[35:48] probably like a week or two prior to that, I was awarded a 6-year $98 million
[35:50] that, I was awarded a 6-year $98 million contract from Miami-Dade County.
[35:53] contract from Miami-Dade County. Now, mind you, it's me and four guys.
[35:55] Now, mind you, it's me and four guys. And I just hit for 98 million.
[35:57] And I just hit for 98 million. Right? And so, he's like, "What's your
[35:59] Right? And so, he's like, "What's your plan?" I'm like, "I don't know. I ain't
[36:01] plan?" I'm like, "I don't know. I ain't really thought that far into it yet. I
[36:02] really thought that far into it yet. I mean, I got 6 years to figure it out, I
[36:04] mean, I got 6 years to figure it out, I guess." Right.
[36:05] guess." Right. And uh
[36:07] And uh he's like, "Well, well,
[36:09] he's like, "Well, well, let me buy you and let me do all the
[36:10] let me buy you and let me do all the work."
[36:11] work." So, I was like, "Well, why would I do
[36:12] So, I was like, "Well, why would I do that?" He was like, "Well,
[36:14] that?" He was like, "Well, if you just hit for $90 million and you
[36:17] if you just hit for $90 million and you operate on a 20% profit margin, that
[36:19] operate on a 20% profit margin, that means you're going to make $18 million
[36:21] means you're going to make $18 million in profit. But that means you're going
[36:22] in profit. But that means you're going to need $72 million to make $18 million.
[36:25] to need $72 million to make $18 million. Do you have $72 million?"
[36:28] Do you have $72 million?" I was like, "Yeah, no. I really don't
[36:29] I was like, "Yeah, no. I really don't have 72 extra million dollars." He was
[36:31] have 72 extra million dollars." He was like, "Okay. I do." I was like, "All
[36:34] like, "Okay. I do." I was like, "All right." And he's like, "Well, how much
[36:35] right." And he's like, "Well, how much do you want?" I was like, "I don't I
[36:36] do you want?" I was like, "I don't I don't know. Like I don't know what my
[36:38] don't know. Like I don't know what my business is worth." He was like, "Well,
[36:40] business is worth." He was like, "Well, write down on a piece of paper how much
[36:41] write down on a piece of paper how much money you want."
[36:43] money you want." And you know, like I'm like, "All right,
[36:44] And you know, like I'm like, "All right, bro."
[36:45] bro." He was like, "All right. Cool. We'll
[36:46] He was like, "All right. Cool. We'll have it to you next week." I was like,
[36:48] have it to you next week." I was like, "What?"
[36:48] "What?" >> [laughter]
[36:52] >> I was like, "Did you say what?" And he
[36:53] >> I was like, "Did you say what?" And he was like, "Yeah." And I'll never forget
[36:54] was like, "Yeah." And I'll never forget the phone. The craziest thing is like I
[36:56] the phone. The craziest thing is like I thought it was a lot of money cuz it was
[36:58] thought it was a lot of money cuz it was life-changing money for me. They
[37:00] life-changing money for me. They literally bought my company on a line of
[37:01] literally bought my company on a line of credit. Like they didn't even like They
[37:03] credit. Like they didn't even like They didn't get a loan. They didn't get Like
[37:05] didn't get a loan. They didn't get Like he literally had that amount of money on
[37:07] he literally had that amount of money on a line of credit. Right. He was like,
[37:09] a line of credit. Right. He was like, "Yeah. It's It's like that's not a lot
[37:10] "Yeah. It's It's like that's not a lot of money."
[37:12] of money." And I'm like, "Fuck. I just messed up. I
[37:13] And I'm like, "Fuck. I just messed up. I could have gotten
[37:14] could have gotten >> [laughter]
[37:16] >> Oh, man. And that's what happened. So, I
[37:18] >> Oh, man. And that's what happened. So, I ended up selling my business within 2
[37:20] ended up selling my business within 2 years owning it just because I amassed a
[37:22] years owning it just because I amassed a lot of contracts and and they and
[37:24] lot of contracts and and they and they wanted them. Wow. Wow. So, in that
[37:26] they wanted them. Wow. Wow. So, in that 2 years, can can you share like what
[37:28] 2 years, can can you share like what type of revenue you guys did before you
[37:29] type of revenue you guys did before you sold? Yeah. So, in those 2 years, so in
[37:32] sold? Yeah. So, in those 2 years, so in underground utility in the 2 years prior
[37:33] underground utility in the 2 years prior to selling, I was doing I was high seven
[37:36] to selling, I was doing I was high seven figures, about to touch eight figures.
[37:39] figures, about to touch eight figures. So, I hadn't I hadn't crossed 10 million
[37:40] So, I hadn't I hadn't crossed 10 million in those 2 years. I was I was mid to
[37:42] in those 2 years. I was I was mid to high seven figures. I was teetering
[37:44] high seven figures. I was teetering between five to seven million a year in
[37:46] between five to seven million a year in those in those 2 years. Now, in my other
[37:49] those in those 2 years. Now, in my other company, the one that I gave to my dad
[37:51] company, the one that I gave to my dad at that time, we were already crossing
[37:52] at that time, we were already crossing eight figures, um
[37:54] eight figures, um doing strictly federal work. But I only
[37:57] doing strictly federal work. But I only sold the underground utility company.
[37:59] sold the underground utility company. Got you. Got you. Okay. And And is that
[38:02] Got you. Got you. Okay. And And is that realistic what the guy said like 20% you
[38:06] realistic what the guy said like 20% you margins is like Yeah. So, So, the way it
[38:08] margins is like Yeah. So, So, the way it works in government contracting is on um
[38:11] works in government contracting is on um small contracts, meaning contracts under
[38:14] small contracts, meaning contracts under the simplified acquisition threshold, so
[38:16] the simplified acquisition threshold, so under 350,000, you're typically going to
[38:18] under 350,000, you're typically going to be at 8 to 12% margins. Medium-size
[38:21] be at 8 to 12% margins. Medium-size contracts, 350 to 5 million, you're
[38:23] contracts, 350 to 5 million, you're going to be somewhere between um 12 to
[38:25] going to be somewhere between um 12 to 20. And then when you get over that,
[38:28] 20. And then when you get over that, when you start to get up into your, you
[38:30] when you start to get up into your, you know, 5 7 10 20 million dollar
[38:32] know, 5 7 10 20 million dollar contracts, your margins go from 20% on.
[38:35] contracts, your margins go from 20% on. It's like economies of scale.
[38:36] It's like economies of scale. >> It is economy It's economy of scale. And
[38:37] >> It is economy It's economy of scale. And And what it is is basically the way the
[38:39] And what it is is basically the way the government substantiates substantiates
[38:41] government substantiates substantiates it is it's risk factor.
[38:43] it is it's risk factor. So, the larger your contract value, the
[38:45] So, the larger your contract value, the more risk that you're going to have, the
[38:46] more risk that you're going to have, the more money the government's willing to
[38:47] more money the government's willing to pay for you to do it. But also, when you
[38:49] pay for you to do it. But also, when you get to that certain level, your
[38:51] get to that certain level, your competition pool widens down. So,
[38:52] competition pool widens down. So, therefore, you're able to increase, you
[38:54] therefore, you're able to increase, you know, The average person can't do a job
[38:56] know, The average person can't do a job over 350 million. So, you're going to
[38:58] over 350 million. So, you're going to have a lot of competition. I'm sorry,
[38:59] have a lot of competition. I'm sorry, over 350,000. So, you're going to have a
[39:01] over 350,000. So, you're going to have a lot of competition on your smaller
[39:02] lot of competition on your smaller contracts. That's why your margins are
[39:04] contracts. That's why your margins are going to be that eight 8%. The sweet
[39:06] going to be that eight 8%. The sweet spot where I try to operate now and with
[39:09] spot where I try to operate now and with a lot of my students in my businesses is
[39:13] a lot of my students in my businesses is call it 500k
[39:15] call it 500k to 5 million.
[39:16] to 5 million. So, 500k to 5 million, that's where
[39:18] So, 500k to 5 million, that's where you're going to start to like weed out a
[39:20] you're going to start to like weed out a lot of the small guys, but then it's too
[39:21] lot of the small guys, but then it's too small for the big guys.
[39:23] small for the big guys. So, that's that sweet spot. If you can
[39:25] So, that's that sweet spot. If you can go after, you know, 3 million dollar
[39:27] go after, you know, 3 million dollar contracts, 2 million dollar contracts,
[39:29] contracts, 2 million dollar contracts, you can do 15 18 sometimes 20% profit
[39:32] you can do 15 18 sometimes 20% profit margins with very low competition.
[39:35] margins with very low competition. When you get over that and you start to
[39:37] When you get over that and you start to get into your 7 10 12 15 million dollar
[39:40] get into your 7 10 12 15 million dollar contracts, that your profit margins are
[39:42] contracts, that your profit margins are going to increase, but then now it
[39:44] going to increase, but then now it becomes a little bit of more of a
[39:45] becomes a little bit of more of a trickier game because now people are
[39:47] trickier game because now people are spending more money. So, those those
[39:50] spending more money. So, those those contracts, which are your large-scale
[39:51] contracts, which are your large-scale contracts, which is like within in the
[39:54] contracts, which is like within in the trucking space, that's why it's so hard
[39:56] trucking space, that's why it's so hard for a lot of trucking businesses to get
[39:57] for a lot of trucking businesses to get in it because the contracts that the
[39:58] in it because the contracts that the government puts out, they're 10-year 250
[40:02] government puts out, they're 10-year 250 million.
[40:03] million. And so, the person that can do them,
[40:05] And so, the person that can do them, it's a very small pool of individuals
[40:06] it's a very small pool of individuals that can do them, but then it's a
[40:08] that can do them, but then it's a 10-year contract. So, that means that if
[40:10] 10-year contract. So, that means that if it's out now, people are spending money
[40:12] it's out now, people are spending money 4 years in advance, 5 years in advance
[40:15] 4 years in advance, 5 years in advance to get ready for it to come out. Right.
[40:17] to get ready for it to come out. Right. And small businesses can't do that.
[40:19] And small businesses can't do that. Small businesses can't invest a hundred
[40:21] Small businesses can't invest a hundred 250,000 dollars a year in a contract.
[40:24] 250,000 dollars a year in a contract. Not it like not winning, but preparing
[40:26] Not it like not winning, but preparing to even submit
[40:28] to even submit it to not possibly win. Only big
[40:31] it to not possibly win. Only big businesses can do that. So, when you get
[40:32] businesses can do that. So, when you get to that level, that's why your profit
[40:33] to that level, that's why your profit margins increase because the amount of
[40:36] margins increase because the amount of money that it takes for them to prepare
[40:37] money that it takes for them to prepare for a contract is so much more and the
[40:40] for a contract is so much more and the government basically is paying them
[40:41] government basically is paying them back.
[40:42] back. So, they're saying, "Hey, we're going to
[40:43] So, they're saying, "Hey, we're going to give you a 30% margin on this job
[40:45] give you a 30% margin on this job because we know
[40:47] because we know that you spent 2 million dollars to
[40:48] that you spent 2 million dollars to prepare your proposal."
[40:51] prepare your proposal." So, this is how you're going to make
[40:52] So, this is how you're going to make that 2 million back. Not only are you
[40:54] that 2 million back. Not only are you going to make your typical profit
[40:55] going to make your typical profit margins, but your margins are increased
[40:57] margins, but your margins are increased to cover the cost that it cost you.
[40:59] to cover the cost that it cost you. Yeah, which is similar to what you kind
[41:01] Yeah, which is similar to what you kind of ran into with the gentleman who
[41:02] of ran into with the gentleman who acquired your your company, right? You
[41:04] acquired your your company, right? You didn't have that up front capital to be
[41:07] didn't have that up front capital to be able to kind of manage that contract
[41:09] able to kind of manage that contract going forward.
[41:10] going forward. >> Yeah.
[41:10] >> Yeah. All right, so so you said that company
[41:13] All right, so so you said that company was doing about almost 10 million.
[41:15] was doing about almost 10 million. >> Yep. When I sold What multiple did he
[41:17] >> Yep. When I sold What multiple did he buy you at? I got a horrible multiple. I
[41:19] buy you at? I got a horrible multiple. I got like a two and a quarter when I sold
[41:22] got like a two and a quarter when I sold at the time. I got a horrible multiple
[41:24] at the time. I got a horrible multiple because um
[41:26] because um so, the problem and which is
[41:29] so, the problem and which is I learned a lot through that. Let me Let
[41:30] I learned a lot through that. Let me Let me say this before I go on to say this.
[41:31] me say this before I go on to say this. So, I learned a lot through that
[41:32] So, I learned a lot through that process, which is why all right, do
[41:35] process, which is why all right, do acquisitions now.
[41:37] acquisitions now. And I do acquisitions now so much better
[41:38] And I do acquisitions now so much better because I learned what not to do when I
[41:40] because I learned what not to do when I sold my business.
[41:42] sold my business. So, one of the issues why I was why I
[41:43] So, one of the issues why I was why I got such a small a low multiple is
[41:46] got such a small a low multiple is because I didn't have proper processes
[41:47] because I didn't have proper processes and systems in place.
[41:49] and systems in place. So, I had assets and I had revenue.
[41:52] So, I had assets and I had revenue. So, when you acquire businesses, you
[41:54] So, when you acquire businesses, you look at a number of different factors
[41:55] look at a number of different factors which go into your multiple. People,
[41:58] which go into your multiple. People, assets, revenue, systems, those are some
[42:01] assets, revenue, systems, those are some of your big factors that increase your
[42:02] of your big factors that increase your multiple.
[42:04] multiple. I didn't have many people because I was
[42:06] I didn't have many people because I was operating I was an owner-operator, which
[42:08] operating I was an owner-operator, which that makes me a single point of failure.
[42:10] that makes me a single point of failure. I had crews underneath me, but I was the
[42:12] I had crews underneath me, but I was the brainchild of everything.
[42:14] brainchild of everything. So, that lowered my multiple. I had
[42:16] So, that lowered my multiple. I had revenue, which that's what they wanted,
[42:18] revenue, which that's what they wanted, so they were able to pay me for that. I
[42:20] so they were able to pay me for that. I had assets, which I got
[42:21] had assets, which I got dollar-for-dollar value for my assets on
[42:23] dollar-for-dollar value for my assets on top of my revenue.
[42:25] top of my revenue. But I didn't have systems. Without
[42:26] But I didn't have systems. Without systems, then that means that they would
[42:30] systems, then that means that they would have to come in and create a system for
[42:31] have to come in and create a system for my business to operate. If I had systems
[42:34] my business to operate. If I had systems in place, they would have been able to
[42:35] in place, they would have been able to put anybody into my system and run my
[42:37] put anybody into my system and run my business for me.
[42:39] business for me. So, that's what led to my multiple being
[42:40] So, that's what led to my multiple being a lot lower than what I possibly could
[42:42] a lot lower than what I possibly could have gotten at the time. But still, like
[42:44] have gotten at the time. But still, like I said, I still made I was happy. Okay.
[42:47] I said, I still made I was happy. Okay. Okay, you got a couple mil out the deal.
[42:49] Okay, you got a couple mil out the deal. >> Yeah, yeah, for sure. Okay. Okay, got
[42:51] >> Yeah, yeah, for sure. Okay. Okay, got it. All right, cool. So, after you get
[42:52] it. All right, cool. So, after you get that after you that acquisition happens,
[42:55] that after you that acquisition happens, what do you what do you do next? Man, so
[42:57] what do you what do you do next? Man, so I went to work for the private equity
[42:59] I went to work for the private equity firm that bought me for 2 years.
[43:01] firm that bought me for 2 years. Um I worked for them for 2 years and it
[43:03] Um I worked for them for 2 years and it was
[43:04] was it was crazy because you you take a guy
[43:06] it was crazy because you you take a guy like me, didn't graduate college from
[43:09] like me, didn't graduate college from Miami, like and now um
[43:13] Miami, like and now um in a boardroom because what I did was I
[43:15] in a boardroom because what I did was I didn't take all my cash, I took stock
[43:17] didn't take all my cash, I took stock options also, so I actually became a
[43:18] options also, so I actually became a owner of the actual entity that bought
[43:21] owner of the actual entity that bought me. So, I did it something very
[43:23] me. So, I did it something very untraditional, unconventional, but
[43:26] untraditional, unconventional, but it was one of those things like uh
[43:28] it was one of those things like uh I always had foresight. I was like I
[43:29] I always had foresight. I was like I This is bigger than me. Right.
[43:31] This is bigger than me. Right. >> So, like I took enough cash, but then I
[43:32] >> So, like I took enough cash, but then I was like I want to own some of the
[43:33] was like I want to own some of the company. Smart.
[43:34] company. Smart. >> They were like, "You want to do what?"
[43:36] >> They were like, "You want to do what?" Because Yeah, he was [clears throat]
[43:36] Because Yeah, he was [clears throat] like nobody Most people Most owners are
[43:38] like nobody Most people Most owners are like just give me my cash, let me get
[43:39] like just give me my cash, let me get out of here. I was like, "Nah, I want to
[43:41] out of here. I was like, "Nah, I want to roll back in."
[43:42] roll back in." So, I rolled a bunch of my equity back
[43:44] So, I rolled a bunch of my equity back into the not just my company, but the
[43:46] into the not just my company, but the entire entity.
[43:48] entire entity. So, I became an owner of the entity that
[43:50] So, I became an owner of the entity that we owned. At the time, we're doing nine
[43:51] we owned. At the time, we're doing nine figures in revenue. So, I was a minority
[43:53] figures in revenue. So, I was a minority owner, but still an owner of this
[43:55] owner, but still an owner of this nine-figure company.
[43:57] nine-figure company. So, with that I was able to sit at the
[43:59] So, with that I was able to sit at the table for everything that we did. All
[44:00] table for everything that we did. All the subsequent mergers and acquisitions
[44:02] the subsequent mergers and acquisitions that we did. All the CAPEX purchases
[44:04] that we did. All the CAPEX purchases that we did. All the contract
[44:05] that we did. All the contract negotiations that we did. Everything
[44:07] negotiations that we did. Everything that took place within that company over
[44:08] that took place within that company over those 24 months, I was able to be a part
[44:10] those 24 months, I was able to be a part of. I tell people I got a Harvard MBA.
[44:13] of. I tell people I got a Harvard MBA. So, I got kicked out of FAMU with their
[44:15] So, I got kicked out of FAMU with their MBA. I'm cool with that cuz I went to
[44:17] MBA. I'm cool with that cuz I went to business I went to business school in 24
[44:19] business I went to business school in 24 months. I was sitting at the table with
[44:21] months. I was sitting at the table with sharks learning how to do this business
[44:23] sharks learning how to do this business at a high level. And that was the best
[44:26] at a high level. And that was the best and worst 2 years of my life because I
[44:28] and worst 2 years of my life because I actually learned how business is done
[44:30] actually learned how business is done for real for real. Not not in a book,
[44:32] for real for real. Not not in a book, not in theory, but like really how
[44:35] not in theory, but like really how multi-million and hundred million dollar
[44:37] multi-million and hundred million dollar deals are done.
[44:38] deals are done. So, it was it was crazy. What would you
[44:40] So, it was it was crazy. What would you learn? What was the biggest takeaway
[44:41] learn? What was the biggest takeaway from that in that 2 years? Man, I
[44:45] from that in that 2 years? Man, I I can't even say there was like one big
[44:46] I can't even say there was like one big one. Like I learned so much. I learned
[44:48] one. Like I learned so much. I learned about um I learned about how to properly
[44:50] about um I learned about how to properly value companies. I learned about how to
[44:54] value companies. I learned about how to put real systems in place. I learned how
[44:57] put real systems in place. I learned how to evaluate employees and and how to put
[45:00] to evaluate employees and and how to put people in certain roles where they need
[45:01] people in certain roles where they need to be at. I learned how to negotiate
[45:03] to be at. I learned how to negotiate contracts at different levels. I learned
[45:07] contracts at different levels. I learned I learned so much. I said the biggest
[45:09] I learned so much. I said the biggest takeaway from for me from that honestly
[45:11] takeaway from for me from that honestly was the connections that I made.
[45:13] was the connections that I made. Because now I was brought into rooms
[45:14] Because now I was brought into rooms that I never should have been in.
[45:16] that I never should have been in. And so, I was able to interact with
[45:18] And so, I was able to interact with people that I never would have met. So,
[45:20] people that I never would have met. So, I made so many valuable connections in
[45:22] I made so many valuable connections in those 24 months, not just um from
[45:25] those 24 months, not just um from business, but just life. And and so,
[45:27] business, but just life. And and so, that that was one of the biggest
[45:29] that that was one of the biggest takeaways was the actual connections.
[45:31] takeaways was the actual connections. Okay. And they kept you on as a operator
[45:33] Okay. And they kept you on as a operator as well, right? So, you were still like
[45:35] as well, right? So, you were still like So, I didn't operate my company. I
[45:37] So, I didn't operate my company. I operated the entire entity. So, I became
[45:38] operated the entire entity. So, I became vice president of Southeast United
[45:40] vice president of Southeast United States. So, I ran all
[45:42] States. So, I ran all um
[45:42] um I ran all underground utility options
[45:44] I ran all underground utility options for this entity for the Southeast United
[45:46] for this entity for the Southeast United States. Wow. Yeah, so I ran everything
[45:48] States. Wow. Yeah, so I ran everything from Florida um all the way through
[45:50] from Florida um all the way through Tennessee. Okay. And so, I was operating
[45:53] Tennessee. Okay. And so, I was operating I had at my company, just at my company
[45:56] I had at my company, just at my company in West Palm Beach, I had 110 employees.
[46:00] in West Palm Beach, I had 110 employees. I had another 80 in uh Tennessee
[46:03] I had another 80 in uh Tennessee um that I had. So, I was operating I was
[46:05] um that I had. So, I was operating I was running almost close to 200 people. Um
[46:09] running almost close to 200 people. Um equipment I was operating about 50
[46:11] equipment I was operating about 50 million dollars worth of equipment and
[46:13] million dollars worth of equipment and we were doing just north of 100 million
[46:15] we were doing just north of 100 million dollars in revenue. Okay. Yeah, a year.
[46:17] dollars in revenue. Okay. Yeah, a year. This is the company that acquired you
[46:19] This is the company that acquired you that we're talking about.
[46:20] that we're talking about. >> Mhm. Wow. All right, cool cool cool. All
[46:23] >> Mhm. Wow. All right, cool cool cool. All right, so after those 2 years are up,
[46:25] right, so after those 2 years are up, >> [snorts]
[46:25] >> [snorts] >> you leave? Man, yeah, it was crazy.
[46:28] >> you leave? Man, yeah, it was crazy. So, November 2020,
[46:31] So, November 2020, um
[46:32] um I left.
[46:33] I left. And I'm sitting there I'm like, "Damn,
[46:35] And I'm sitting there I'm like, "Damn, what am I going to do?" I was like,
[46:36] what am I going to do?" I was like, "Boom, I'mma go back into real estate."
[46:39] "Boom, I'mma go back into real estate." So, I'm like, "Cool, I'm going to get
[46:40] So, I'm like, "Cool, I'm going to get back into real estate." Um
[46:42] back into real estate." Um at the time, I had just I got my
[46:43] at the time, I had just I got my underground utility contractor's
[46:45] underground utility contractor's license, I got my general contractor
[46:46] license, I got my general contractor license.
[46:48] license. I'm like, "I'mma start a small home
[46:49] I'm like, "I'mma start a small home remodel company. I got a little bit of
[46:51] remodel company. I got a little bit of money, so I'm not hurting for bread.
[46:53] money, so I'm not hurting for bread. I'mma start underground um I'm sorry, a
[46:55] I'mma start underground um I'm sorry, a home remodel company and I'm going to,
[46:57] home remodel company and I'm going to, you know, do kitchens and bathrooms for
[46:59] you know, do kitchens and bathrooms for people and I'mma flip two houses a year
[47:01] people and I'mma flip two houses a year for myself.
[47:02] for myself. I flip two houses a year for myself,
[47:05] I flip two houses a year for myself, make 150,000 dollars a year, I do a
[47:07] make 150,000 dollars a year, I do a couple kitchens and bathrooms in between
[47:09] couple kitchens and bathrooms in between the time that, you know, pay my guys.
[47:11] the time that, you know, pay my guys. That's my life.
[47:13] That's my life. Um
[47:14] Um so, Thanksgiving, Christmas, I go
[47:16] so, Thanksgiving, Christmas, I go through the holidays. I say I'm going to
[47:17] through the holidays. I say I'm going to start fresh January 1st, 2021. I'mma
[47:21] start fresh January 1st, 2021. I'mma start doing my home improvement and and
[47:22] start doing my home improvement and and my remodels and start flipping.
[47:25] my remodels and start flipping. COVID hits.
[47:27] COVID hits. COVID hits February 2021.
[47:31] COVID hits February 2021. The company
[47:32] The company >> 2020
[47:33] >> 2020 It was
[47:35] It was No, it was 2020.
[47:36] No, it was 2020. >> COVID was 2020.
[47:37] >> COVID was 2020. >> It was late 2020. Yeah, it was March
[47:39] >> It was late 2020. Yeah, it was March Yeah, March February March 2020 is when
[47:41] Yeah, March February March 2020 is when >> It might have been Yeah, so
[47:43] >> It might have been Yeah, so that So, when that happened Yeah, it was
[47:45] that So, when that happened Yeah, it was 2020. So, when that happened, um
[47:47] 2020. So, when that happened, um I was like, "Damn, what am I going to
[47:48] I was like, "Damn, what am I going to do?" Like I started getting calls from
[47:50] do?" Like I started getting calls from all of the
[47:51] all of the agencies that I was working for because
[47:53] agencies that I was working for because the private equity firm, they didn't
[47:55] the private equity firm, they didn't know what was going on. So, if you know
[47:56] know what was going on. So, if you know anything about um
[47:59] anything about um big money financial stuff, it's all
[48:01] big money financial stuff, it's all about leveraging risk.
[48:03] about leveraging risk. And so, when risk becomes too high and
[48:06] And so, when risk becomes too high and they don't know and they can't predict,
[48:08] they don't know and they can't predict, they they cut their losses. So, they
[48:10] they they cut their losses. So, they essentially cut their losses in the
[48:11] essentially cut their losses in the business because they didn't know what
[48:12] business because they didn't know what was going to happen throughout COVID.
[48:14] was going to happen throughout COVID. So, I ended up essentially getting back
[48:16] So, I ended up essentially getting back into underground utility because I had
[48:18] into underground utility because I had all my clients, all the cities, all of
[48:20] all my clients, all the cities, all of everybody they're calling me. "Hey, we
[48:21] everybody they're calling me. "Hey, we need this is this." I'm like, "Well, I'm
[48:22] need this is this." I'm like, "Well, I'm not there anymore. Call them."
[48:24] not there anymore. Call them." >> [laughter]
[48:24] >> [laughter] >> They're like, "Yeah, they're not picking
[48:25] >> They're like, "Yeah, they're not picking up the phone." I'm like, "Okay, so what
[48:27] up the phone." I'm like, "Okay, so what do you want me to do?" They're like,
[48:28] do you want me to do?" They're like, "Well, you got to help us out. We don't
[48:29] "Well, you got to help us out. We don't know what we're doing this whole COVID
[48:30] know what we're doing this whole COVID thing. We can't send employees out." So,
[48:33] thing. We can't send employees out." So, I was like, "All right." So, I ended up
[48:34] I was like, "All right." So, I ended up getting back in underground utility.
[48:36] getting back in underground utility. Okay. So, I get back in underground
[48:37] Okay. So, I get back in underground utility.
[48:39] utility. Start, you know, I'm doing it and I'm
[48:40] Start, you know, I'm doing it and I'm running it. I started my company all
[48:42] running it. I started my company all back over again. But are you you're
[48:44] back over again. But are you you're doing this through the through a
[48:45] doing this through the through a contract now or you're just doing this
[48:46] contract now or you're just doing this in the private sector now? I'm I'm still
[48:48] in the private sector now? I'm I'm still doing I'm doing government work, but I
[48:50] doing I'm doing government work, but I had to basically restart my company all
[48:52] had to basically restart my company all over again.
[48:52] over again. >> Okay. And then a lot of my guys that now
[48:55] >> Okay. And then a lot of my guys that now are laid off from the firm, they come to
[48:58] are laid off from the firm, they come to work for me. So, I essentially went from
[49:01] work for me. So, I essentially went from zero to now up again doing multi-million
[49:04] zero to now up again doing multi-million dollars in underground utility in less
[49:05] dollars in underground utility in less than 12 months because I ended up
[49:07] than 12 months because I ended up picking up all the work that wasn't
[49:09] picking up all the work that wasn't being done because nobody wanted to do
[49:11] being done because nobody wanted to do it during COVID. But how are you how are
[49:13] it during COVID. But how are you how are you getting a contract to do that
[49:14] you getting a contract to do that though? Like I was getting them from the
[49:16] though? Like I was getting them from the cities. Okay. So, you just So, you're
[49:18] cities. Okay. So, you just So, you're going back to government contract.
[49:20] going back to government contract. >> Yeah, I went back to government
[49:20] >> Yeah, I went back to government contract. Yeah, I went back to
[49:21] contract. Yeah, I went back to government contract. So, so just just
[49:23] government contract. So, so just just for clarity, is it like once a
[49:25] for clarity, is it like once a contractor, always a contractor?
[49:27] contractor, always a contractor? Basically, that's how it works. That's
[49:29] Basically, that's how it works. That's why that's why a lot of people who do
[49:32] why that's why a lot of people who do it, they don't get out of it, which is
[49:34] it, they don't get out of it, which is also why I'm doing what I'm doing now
[49:35] also why I'm doing what I'm doing now with acquisitions.
[49:37] with acquisitions. Because when you're a government
[49:38] Because when you're a government contractor, that's it's till death do us
[49:40] contractor, that's it's till death do us part. When you when you are working with
[49:42] part. When you when you are working with the government, you don't you can't walk
[49:44] the government, you don't you can't walk away. That's not how it works.
[49:47] away. That's not how it works. Like when you in you
[49:48] Like when you in you >> La Cosa Nostra, man.
[49:49] >> La Cosa Nostra, man. I mean, it's [laughter] the government.
[49:50] I mean, it's [laughter] the government. What do you want me to tell you?
[49:52] What do you want me to tell you? >> You're right. I mean, that's the biggest
[49:53] >> You're right. I mean, that's the biggest biggest mob out here, right? I mean,
[49:55] biggest mob out here, right? I mean, come on. Like and that's the sense it So
[49:56] come on. Like and that's the sense it So it's like when when they call you, you
[49:59] it's like when when they call you, you pick up the phone. You you can't say no.
[50:02] pick up the phone. You you can't say no. Cuz if you say no, then you can never go
[50:03] Cuz if you say no, then you can never go back.
[50:05] back. So it's like it's like if you decide
[50:06] So it's like it's like if you decide that you ain't doing it no more, then
[50:08] that you ain't doing it no more, then you ain't never doing it. So these are
[50:10] you ain't never doing it. So these are based on like they're they're they're
[50:11] based on like they're they're they're calling Kevin or they're calling
[50:13] calling Kevin or they're calling >> No,
[50:14] >> No, because
[50:15] because the way the government works is it's
[50:16] the way the government works is it's very relationship driven.
[50:18] very relationship driven. So it's like when they know Kevin, they
[50:20] So it's like when they know Kevin, they deal with Kevin.
[50:22] deal with Kevin. And then they're dealing with Kevin.
[50:23] And then they're dealing with Kevin. They don't care what shirt I wear they
[50:26] They don't care what shirt I wear they it's me. Got it. So when all this
[50:29] it's me. Got it. So when all this started happening, they started calling
[50:30] started happening, they started calling Kevin. So I'm like, well, I Kevin
[50:32] Kevin. So I'm like, well, I Kevin doesn't want to do this anymore.
[50:34] doesn't want to do this anymore. You can call these people because they
[50:36] You can call these people because they now own my company and they can help
[50:38] now own my company and they can help you. But it's just So I ended up getting
[50:40] you. But it's just So I ended up getting back into it because they weren't
[50:41] back into it because they weren't answering the phones. Mhm. Because it's
[50:43] answering the phones. Mhm. Because it's COVID. So they don't know what's going
[50:45] COVID. So they don't know what's going to happen. They don't You think about I
[50:46] to happen. They don't You think about I work in underground too. I work in a
[50:47] work in underground too. I work in a sewer.
[50:48] sewer. So we work around human feces. Right.
[50:50] So we work around human feces. Right. They don't want to send employees out
[50:52] They don't want to send employees out there to go hop in a manhole, then feces
[50:54] there to go hop in a manhole, then feces gets on them. Now they get COVID, they
[50:56] gets on them. Now they get COVID, they die. Now their family member sues sues
[50:58] die. Now their family member sues sues the private equity firm? Right. But you
[51:00] the private equity firm? Right. But you But you was cool with it. Hell yeah. I
[51:02] But you was cool with it. Hell yeah. I [laughter] ain't sure. Because
[51:05] [laughter] ain't sure. Because Hindsight. When you say it like that, it
[51:07] Hindsight. When you say it like that, it is kind of crazy, right? But I didn't
[51:09] is kind of crazy, right? But I didn't care because
[51:13] the big companies didn't want to do it
[51:14] the big companies didn't want to do it because they're mitigating risk. Yeah.
[51:16] because they're mitigating risk. Yeah. The municipalities, the government
[51:19] The municipalities, the government didn't want to do it because they're
[51:20] didn't want to do it because they're mitigating risk.
[51:22] mitigating risk. So then if I do it, now I am charging
[51:25] So then if I do it, now I am charging you more to mitigate risk.
[51:27] you more to mitigate risk. So this is a $100 job, but now I don't
[51:30] So this is a $100 job, but now I don't know if me or my guys are going to get
[51:32] know if me or my guys are going to get sick doing it. So now it's a $600 job.
[51:35] sick doing it. So now it's a $600 job. So then the government's like,
[51:37] So then the government's like, "Okay, cuz we don't have nobody else to
[51:40] "Okay, cuz we don't have nobody else to do it."
[51:41] do it." So during COVID, it was a small group of
[51:43] So during COVID, it was a small group of us out there working for cities. It's
[51:45] us out there working for cities. It's almost It was almost like it's very
[51:47] almost It was almost like it's very similar to like disaster and debris
[51:49] similar to like disaster and debris removal. Like when there's hurricanes,
[51:50] removal. Like when there's hurricanes, like they they pay anything to clean
[51:52] like they they pay anything to clean after a hurricane or tornado? COVID was
[51:54] after a hurricane or tornado? COVID was very similar. It just lasted so much
[51:55] very similar. It just lasted so much longer.
[51:56] longer. Mhm.
[51:57] Mhm. And so the first probably 3 to 6 months
[51:59] And so the first probably 3 to 6 months of of COVID doing work for the
[52:01] of of COVID doing work for the government was very tricky. I mean, to
[52:03] government was very tricky. I mean, to be honest with you, when you look now,
[52:05] be honest with you, when you look now, they just literally Trump just started
[52:07] they just literally Trump just started bringing people back in the office just
[52:09] bringing people back in the office just last year. Right. You had people that
[52:11] last year. Right. You had people that have been working at home remotely since
[52:13] have been working at home remotely since COVID.
[52:14] COVID. >> For sure.
[52:15] >> For sure. >> [laughter]
[52:16] >> [laughter] >> For sure.
[52:17] >> For sure. >> like he just did that this like just
[52:19] >> like he just did that this like just last year. Like that's crazy. Yeah.
[52:20] last year. Like that's crazy. Yeah. Yeah. Yeah. So so the there was no like
[52:23] Yeah. Yeah. So so the there was no like non-competes or anything like that in
[52:24] non-competes or anything like that in place that would There There was There
[52:26] place that would There There was There was There was There was There was There
[52:26] was There was There was There was There was There was There was There was
[52:27] was There was There was There was >> There was, but because once again, The
[52:30] >> There was, but because once again, The situation it just was like everything's
[52:33] situation it just was like everything's off the It just doesn't matter. And and
[52:35] off the It just doesn't matter. And and I wasn't So I wasn't trying to compete
[52:37] I wasn't So I wasn't trying to compete with them. Right. Because when people
[52:39] with them. Right. Because when people would call me, I would send them back to
[52:41] would call me, I would send them back to them.
[52:42] them. But because they couldn't do it, it was
[52:44] But because they couldn't do it, it was like
[52:45] like It just is what it is.
[52:46] It just is what it is. >> what it is. Like I'm not trying to
[52:48] >> what it is. Like I'm not trying to compete. I don't want to compete with
[52:49] compete. I don't want to compete with you. Right. And so even when I when I
[52:51] you. Right. And so even when I when I got back into it for a long time, like I
[52:53] got back into it for a long time, like I I didn't touch like certain stuff that I
[52:55] I didn't touch like certain stuff that I knew that they had their hands on. And I
[52:57] knew that they had their hands on. And I would still tell people, "Hey, man, you
[52:58] would still tell people, "Hey, man, you got to call them. I can't You got to
[52:59] got to call them. I can't You got to call them."
[53:00] call them." And then eventually, you know, all that
[53:02] And then eventually, you know, all that went away.
[53:03] went away. Wow. Wow. Wow. Okay, so you get back
[53:05] Wow. Wow. Wow. Okay, so you get back into it and So I'm back into it, man.
[53:09] into it and So I'm back into it, man. It's I swear my story is like a soap
[53:10] It's I swear my story is like a soap opera.
[53:11] opera. >> [laughter]
[53:11] >> [laughter] >> Bro, so I get back into it, right? So
[53:13] >> Bro, so I get back into it, right? So I'm doing it, it's going good.
[53:16] I'm doing it, it's going good. I'm making money. I'm running crews. My
[53:18] I'm making money. I'm running crews. My guys are happy. Everybody's doing great.
[53:23] October 2021, I turn 40.
[53:27] October 2021, I turn 40. And I'm like,
[53:29] And I'm like, "This can't be it, God."
[53:30] "This can't be it, God." Cuz I asked for
[53:33] Cuz I asked for the money and all these different
[53:34] the money and all these different things. You gave me all that. But now
[53:37] things. You gave me all that. But now I'm back in the sewer.
[53:39] I'm back in the sewer. So now I got money. I got houses. I got
[53:41] So now I got money. I got houses. I got cars. I got But I'm back in the sewer.
[53:44] cars. I got But I'm back in the sewer. Right. I'm like, is is my life just in a
[53:46] Right. I'm like, is is my life just in a sewer?
[53:47] sewer? Like if that's if I'm a Ninja Turtle,
[53:49] Like if that's if I'm a Ninja Turtle, bro, just tell me I'm a Ninja [laughter]
[53:50] bro, just tell me I'm a Ninja [laughter] Turtle. Like just
[53:52] Turtle. Like just call it what it is, God. If I'm a Ninja
[53:54] call it what it is, God. If I'm a Ninja Turtle, I'm a Ninja Turtle. It is what
[53:56] Turtle, I'm a Ninja Turtle. It is what it is. And I'm like, but I'm like, "God,
[53:58] it is. And I'm like, but I'm like, "God, there's got to be more."
[54:00] there's got to be more." So
[54:01] So it was the craziest thing.
[54:04] it was the craziest thing. I don't know if you know a a a brother
[54:05] I don't know if you know a a a brother online goes by the name of Detroit
[54:07] online goes by the name of Detroit Mogul, Chris Bruce. I don't. So Chris
[54:11] Mogul, Chris Bruce. I don't. So Chris Bruce and my and my boy Vic Vic the
[54:12] Bruce and my and my boy Vic Vic the Greek, they had a podcast at the time.
[54:15] Greek, they had a podcast at the time. And so I've always been throughout my
[54:18] And so I've always been throughout my entire life I've always been
[54:20] entire life I've always been even when I was younger, I was always
[54:22] even when I was younger, I was always OG.
[54:23] OG. You know what I'm saying? I was always
[54:24] You know what I'm saying? I was always the dude in the hood that the young
[54:25] the dude in the hood that the young brothers would come to, "Hey, bro, how
[54:26] brothers would come to, "Hey, bro, how you do this? How you do this? How you
[54:28] you do this? How you do this? How you get into it?" I've always been that. So
[54:30] get into it?" I've always been that. So I've always mentored young dudes. So I
[54:32] I've always mentored young dudes. So I was mentoring this young brother Vic um
[54:34] was mentoring this young brother Vic um and teaching him about government
[54:35] and teaching him about government contracting. And then him and Chris
[54:37] contracting. And then him and Chris started this podcast and he says, "Man,
[54:39] started this podcast and he says, "Man, Kev, I want you to come on our podcast."
[54:42] Kev, I want you to come on our podcast." So I'm like, "All right, cool." Now mind
[54:44] So I'm like, "All right, cool." Now mind you,
[54:45] you, it sounds crazy, but I never had social
[54:48] it sounds crazy, but I never had social media.
[54:49] media. Because I didn't need to. So I didn't
[54:50] Because I didn't need to. So I didn't even know anything about this whole
[54:52] even know anything about this whole podcast wave about all the I didn't know
[54:55] podcast wave about all the I didn't know anything about it.
[54:56] anything about it. >> Right.
[54:57] >> Right. I go on the podcast and I'm just telling
[54:59] I go on the podcast and I'm just telling them what I do. Just like we're talking
[55:01] them what I do. Just like we're talking about government contracting. I'm
[55:02] about government contracting. I'm talking about how I'm helping Vic, you
[55:03] talking about how I'm helping Vic, you know, grow his business and what he's
[55:04] know, grow his business and what he's going through.
[55:06] going through. And and Chris says he says, "Man,
[55:08] And and Chris says he says, "Man, you should make a course."
[55:10] you should make a course." And I'm like, "What is that?" He's like,
[55:12] And I'm like, "What is that?" He's like, "I've never seen anybody online talk
[55:14] "I've never seen anybody online talk about government contracting like you
[55:16] about government contracting like you talk about it." He was like, "You should
[55:18] talk about it." He was like, "You should really start teaching people about
[55:20] really start teaching people about government contracting." So I'm like,
[55:22] government contracting." So I'm like, "Listen, I don't know what that is, but
[55:24] "Listen, I don't know what that is, but if you do it and help me, I'll put it
[55:26] if you do it and help me, I'll put it out. I don't care. It doesn't matter to
[55:27] out. I don't care. It doesn't matter to me."
[55:28] me." So Chris helped me create uh Government
[55:31] So Chris helped me create uh Government Cheese. He actually is the one that came
[55:33] Cheese. He actually is the one that came up with the name Government Cheese. That
[55:34] up with the name Government Cheese. That is funny. And so he was like, "You
[55:36] is funny. And so he was like, "You should start doing this." So I was like,
[55:37] should start doing this." So I was like, "All right, cool." So then I started
[55:39] "All right, cool." So then I started learning about it. I'm like, "Okay.
[55:40] learning about it. I'm like, "Okay. Yeah, I guess it makes sense." Because
[55:42] Yeah, I guess it makes sense." Because mind you, when I started in government
[55:43] mind you, when I started in government contracting,
[55:44] contracting, the internet wasn't a thing. Right. So
[55:46] the internet wasn't a thing. Right. So going to YouTube to watch videos on how
[55:48] going to YouTube to watch videos on how to sign up for SAM and how to do your
[55:51] to sign up for SAM and how to do your certifications, that didn't exist.
[55:53] certifications, that didn't exist. So I'm like, "Oh, wow. Now you can just
[55:55] So I'm like, "Oh, wow. Now you can just watch a video?"
[55:56] watch a video?" He's like, "Yeah, you can just watch a
[55:57] He's like, "Yeah, you can just watch a video and learn how to do it. That's
[55:59] video and learn how to do it. That's what people do now." I'm like, "Oh, all
[56:00] what people do now." I'm like, "Oh, all right, bet. Let's do it."
[56:02] right, bet. Let's do it." So Government Cheese was born and um
[56:05] So Government Cheese was born and um then I found a passion for it. And I was
[56:07] then I found a passion for it. And I was like, "This is what God's God's telling
[56:09] like, "This is what God's God's telling me to do this because the one thing that
[56:11] me to do this because the one thing that I learned was
[56:13] I learned was when I went to the SBA to learn about
[56:15] when I went to the SBA to learn about government contracting, I was being
[56:16] government contracting, I was being taught government contracting by
[56:18] taught government contracting by individuals that had never done
[56:19] individuals that had never done government contracting.
[56:21] government contracting. So I was taught government contracting
[56:22] So I was taught government contracting by people that were government employees
[56:25] by people that were government employees that their boss told them, "Hey, we need
[56:27] that their boss told them, "Hey, we need to sign up so many women-owned
[56:28] to sign up so many women-owned businesses this month.
[56:30] businesses this month. We need to teach people how to do this."
[56:32] We need to teach people how to do this." So then when I would ask them, "Well,
[56:34] So then when I would ask them, "Well, how do I get a contract?" "Well, I don't
[56:35] how do I get a contract?" "Well, I don't know. My boss just said you get a
[56:36] know. My boss just said you get a certification."
[56:37] certification." Because they had never done it. Mhm. So
[56:40] Because they had never done it. Mhm. So I looked at it like this is a chance for
[56:42] I looked at it like this is a chance for me to really show people how to do
[56:44] me to really show people how to do something
[56:45] something that
[56:46] that is really possible as opposed to them
[56:48] is really possible as opposed to them just going to all these resources and
[56:50] just going to all these resources and learning from people that don't do it.
[56:52] learning from people that don't do it. That's one of the biggest things. Like
[56:53] That's one of the biggest things. Like even when I started going online and I
[56:55] even when I started going online and I would watch videos about people talking
[56:57] would watch videos about people talking about government contracting, it was
[56:59] about government contracting, it was government employees.
[57:01] government employees. A government employee can't teach you
[57:02] A government employee can't teach you how to do government contracting. Right.
[57:04] how to do government contracting. Right. They don't know anything about it.
[57:06] They don't know anything about it. And so but that's all we're exposed to.
[57:08] And so but that's all we're exposed to. Nobody's really talking about how to do
[57:10] Nobody's really talking about how to do it. So I was like, "Bet." So then
[57:11] it. So I was like, "Bet." So then Government Cheese was born.
[57:13] Government Cheese was born. And um then I just found a passion for
[57:15] And um then I just found a passion for it and and and I started rocking with
[57:17] it and and and I started rocking with it. So we created the Instagram for
[57:19] it. So we created the Instagram for Government Cheese in in May of 2022.
[57:22] Government Cheese in in May of 2022. And um
[57:23] And um I just been on this this path since then
[57:25] I just been on this this path since then just teaching people about government
[57:26] just teaching people about government contracting. Yeah. Because
[57:29] contracting. Yeah. Because there's so many different reasons why
[57:30] there's so many different reasons why I'm passionate about it, but one of the
[57:31] I'm passionate about it, but one of the biggest ones is that in this country,
[57:35] biggest ones is that in this country, um most minority classes have only had
[57:37] um most minority classes have only had the ability to be in business
[57:40] the ability to be in business for less than 50 years.
[57:42] for less than 50 years. So you think Jim Crow was the the the
[57:44] So you think Jim Crow was the the the 1960s or late '50s, early '60s. So prior
[57:48] 1960s or late '50s, early '60s. So prior to that, black people weren't even
[57:49] to that, black people weren't even allowed to do a lot of things. Right.
[57:51] allowed to do a lot of things. Right. Right? Women-owned businesses, women
[57:53] Right? Women-owned businesses, women weren't allowed to own businesses until
[57:54] weren't allowed to own businesses until the 1980s. It was actually People don't
[57:56] the 1980s. It was actually People don't know this, but it was actually illegal
[57:58] know this, but it was actually illegal for women to have a bank account prior
[58:00] for women to have a bank account prior to 1982, I think it was. Yeah. So all of
[58:03] to 1982, I think it was. Yeah. So all of these different rules came into place
[58:05] these different rules came into place and now the the playing field is level.
[58:08] and now the the playing field is level. But when you do the research and you
[58:09] But when you do the research and you look at the numbers,
[58:11] look at the numbers, the numbers of certified businesses are
[58:13] the numbers of certified businesses are actually decreasing each year.
[58:15] actually decreasing each year. So what's going to happen is we're going
[58:17] So what's going to happen is we're going to get to a point where those numbers
[58:18] to get to a point where those numbers are going to get so low that the big
[58:20] are going to get so low that the big businesses are going to say, "Well,
[58:21] businesses are going to say, "Well, well, why are we setting workers aside?
[58:22] well, why are we setting workers aside? Why are we giving them opportunity? They
[58:24] Why are we giving them opportunity? They don't want it."
[58:25] don't want it." And then we're essentially going to go
[58:26] And then we're essentially going to go back to where we started from.
[58:28] back to where we started from. And so that became my passion for
[58:31] And so that became my passion for teaching
[58:32] teaching communities about government
[58:33] communities about government contracting.
[58:35] contracting. It was I I didn't want to see those
[58:36] It was I I didn't want to see those numbers keep going backwards. And I know
[58:38] numbers keep going backwards. And I know what government contracting did for my
[58:40] what government contracting did for my life and how it changed my life. So I
[58:41] life and how it changed my life. So I know it can do that for others. Is it
[58:43] know it can do that for others. Is it for everybody? No. Like I said, there's
[58:45] for everybody? No. Like I said, there's 36 million small businesses, only 61,000
[58:47] 36 million small businesses, only 61,000 registered. So it's not for everybody.
[58:49] registered. So it's not for everybody. It's actually for a small portion of the
[58:51] It's actually for a small portion of the population.
[58:52] population. But for that small portion of the
[58:54] But for that small portion of the population that truly dive in and
[58:55] population that truly dive in and understand, that small portion of the
[58:57] understand, that small portion of the population I feel like can make a lot of
[58:59] population I feel like can make a lot of change.
[59:01] change. And so that's been my passion for the
[59:02] And so that's been my passion for the last couple years. Yeah, that's dope.
[59:03] last couple years. Yeah, that's dope. It's funny. You know there's a there's a
[59:05] It's funny. You know there's a there's a show on Apple TV now called Government
[59:07] show on Apple TV now called Government Cheese.
[59:07] Cheese. >> Yeah, I know it. Did you see it? I
[59:09] >> Yeah, I know it. Did you see it? I haven't seen it. I I haven't seen the
[59:10] haven't seen it. I I haven't seen the show. It's actually a good show. Yeah, I
[59:12] show. It's actually a good show. Yeah, I haven't seen it. But
[59:12] haven't seen it. But >> It's about a brother who come comes home
[59:14] >> It's about a brother who come comes home from jail and uh he starts this like
[59:16] from jail and uh he starts this like drill company. Mhm. And it's like it's
[59:18] drill company. Mhm. And it's like it's about doing work with the government.
[59:19] about doing work with the government. It's it's pretty interesting. I was
[59:21] It's it's pretty interesting. I was watching it last night.
[59:22] watching it last night. >> And they stole my whole story.
[59:23] >> And they stole my whole story. >> [laughter]
[59:23] >> [laughter] >> So look, this is the crazy thing, right?
[59:24] >> So look, this is the crazy thing, right? So this
[59:26] So this Apple, I need a check.
[59:27] Apple, I need a check. >> like it might It it Apple, I need a
[59:28] >> like it might It it Apple, I need a check. I need a check. Somebody need a I
[59:30] check. I need a check. Somebody need a I need a check. So the So let me you the
[59:32] need a check. So the So let me you the crazy thing about the name, right? So,
[59:34] crazy thing about the name, right? So, at first I didn't like the name.
[59:36] at first I didn't like the name. So, this is how it came about. So, he
[59:38] So, this is how it came about. So, he was like, you know, typical like, "We're
[59:39] was like, you know, typical like, "We're going to call it government cheese.
[59:40] going to call it government cheese. We're getting that cheese from the
[59:41] We're getting that cheese from the government." I was like, "Bro, that's
[59:43] government." I was like, "Bro, that's the corniest
[59:44] the corniest >> [laughter]
[59:44] >> [laughter] >> I've ever heard in my life, my man.
[59:46] >> I've ever heard in my life, my man. Like, that is
[59:47] Like, that is that is corny."
[59:48] that is corny." Right? But then I start I sat with it,
[59:50] Right? But then I start I sat with it, right? And the crazy thing about it like
[59:52] right? And the crazy thing about it like I said, remember I told you 2007-2008, I
[59:54] I said, remember I told you 2007-2008, I lost everything. So, 2009 when I started
[59:57] lost everything. So, 2009 when I started my business, I was on government
[59:58] my business, I was on government assistance. My daughter was born in
[59:59] assistance. My daughter was born in 2010. You know, November 22nd, 2010, my
[01:00:02] 2010. You know, November 22nd, 2010, my daughter was born. I was on government
[01:00:04] daughter was born. I was on government assistance. I was on welfare, WIC. I had
[01:00:06] assistance. I was on welfare, WIC. I had to go stand in line to get the the
[01:00:08] to go stand in line to get the the formula for her. Like, I had to I was on
[01:00:10] formula for her. Like, I had to I was on public assistance when I started my
[01:00:11] public assistance when I started my business. So, for me it's a double
[01:00:14] business. So, for me it's a double meaning, meaning that I was on
[01:00:16] meaning, meaning that I was on government cheese when I began my
[01:00:17] government cheese when I began my journey with government contracting.
[01:00:19] journey with government contracting. And so, that's why I kept the name. Cuz
[01:00:21] And so, that's why I kept the name. Cuz for me it's bigger than just getting
[01:00:23] for me it's bigger than just getting money from the government.
[01:00:24] money from the government. >> 100%.
[01:00:25] >> 100%. >> I I was on public assistance for the
[01:00:27] >> I I was on public assistance for the first couple years of me owning my
[01:00:28] first couple years of me owning my business. And without being on
[01:00:30] business. And without being on government cheese, I wouldn't be the
[01:00:32] government cheese, I wouldn't be the government cheese. Yeah. Yeah, I love
[01:00:34] government cheese. Yeah. Yeah, I love that. All right, let's give them a
[01:00:35] that. All right, let's give them a little sneak peek into the government
[01:00:36] little sneak peek into the government cheese, man. Let's let's talk about some
[01:00:38] cheese, man. Let's let's talk about some stuff that's really tactical that people
[01:00:40] stuff that's really tactical that people could actually take away.
[01:00:42] could actually take away. Um walk us through the pick procurement
[01:00:44] Um walk us through the pick procurement process a little bit. Uh just, you know,
[01:00:47] process a little bit. Uh just, you know, high-level so people could understand
[01:00:49] high-level so people could understand who maybe just watching for the first
[01:00:50] who maybe just watching for the first time and don't know anything about
[01:00:52] time and don't know anything about government contracting. Kind of take us
[01:00:54] government contracting. Kind of take us through that, what that looks like.
[01:00:55] through that, what that looks like. >> All right, bet. So, um first of all, the
[01:00:57] >> All right, bet. So, um first of all, the first thing you have to understand is
[01:00:58] first thing you have to understand is the United States government is the
[01:00:59] the United States government is the largest purchaser of goods and services
[01:01:01] largest purchaser of goods and services in the world. So, the US government is
[01:01:03] in the world. So, the US government is the the largest single purchaser of
[01:01:04] the the largest single purchaser of goods and services in the world. With
[01:01:06] goods and services in the world. With that being said, the United States
[01:01:08] that being said, the United States government in 2024, which is fiscal year
[01:01:10] government in 2024, which is fiscal year 2024, that's the only year that that's
[01:01:12] 2024, that's the only year that that's the latest year that's being reported.
[01:01:14] the latest year that's being reported. But the United States government spent
[01:01:16] But the United States government spent $10.1 trillion.
[01:01:18] $10.1 trillion. Of that $10.1 trillion,
[01:01:21] Of that $10.1 trillion, was done through contracting efforts.
[01:01:22] was done through contracting efforts. The other five trillion was done for
[01:01:24] The other five trillion was done for like paying their employees and stuff
[01:01:26] like paying their employees and stuff like that, right?
[01:01:28] like that, right? Of that five trillion dollars, the
[01:01:29] Of that five trillion dollars, the government set it's a goal that 23% of
[01:01:32] government set it's a goal that 23% of every dollar must be spent with small
[01:01:33] every dollar must be spent with small businesses in some capacity. So, you're
[01:01:35] businesses in some capacity. So, you're talking about about a trillion dollars
[01:01:37] talking about about a trillion dollars of spending goes to small businesses of
[01:01:40] of spending goes to small businesses of some capacity, okay?
[01:01:43] some capacity, okay? So, when you start to break down the
[01:01:44] So, when you start to break down the numbers, it gets really crazy because
[01:01:45] numbers, it gets really crazy because when you're talking about the number of
[01:01:47] when you're talking about the number of firms that are actually certified,
[01:01:48] firms that are actually certified, 61,000 small businesses, um I want to
[01:01:51] 61,000 small businesses, um I want to say right now there's 18,000 um
[01:01:54] say right now there's 18,000 um um 8A's, 12,000 women-owned businesses,
[01:01:56] um 8A's, 12,000 women-owned businesses, 5,000 service-disabled veterans, and
[01:01:58] 5,000 service-disabled veterans, and 2,700 HUBZones. So, you're talking about
[01:02:00] 2,700 HUBZones. So, you're talking about right around 100,000 people that get to
[01:02:02] right around 100,000 people that get to bust down a
[01:02:03] bust down a a trillion dollars a year.
[01:02:05] a trillion dollars a year. So, the numbers are staggering.
[01:02:07] So, the numbers are staggering. Depending on your certification class,
[01:02:09] Depending on your certification class, on average, every small business
[01:02:11] on average, every small business averages three million dollars a year,
[01:02:12] averages three million dollars a year, women-owned three million, and HUBZone
[01:02:14] women-owned three million, and HUBZone seven million. These are just the
[01:02:15] seven million. These are just the statistics based on pure numbers. And if
[01:02:17] statistics based on pure numbers. And if you want to Google it, please do. You go
[01:02:19] you want to Google it, please do. You go to SBA Scorecard. That's the great thing
[01:02:21] to SBA Scorecard. That's the great thing about government contracting, is
[01:02:22] about government contracting, is everything's transparent.
[01:02:24] everything's transparent. >> fact-check me.
[01:02:24] >> fact-check me. >> Please Please Please fact-check
[01:02:25] >> Please Please Please fact-check [laughter] me. Please. And go in the
[01:02:27] [laughter] me. Please. And go in the comments and fact-check me. SBA
[01:02:29] comments and fact-check me. SBA Scorecard, you can pull up the
[01:02:30] Scorecard, you can pull up the scorecard, you're going to get
[01:02:31] scorecard, you're going to get government-wide spending, you can look
[01:02:32] government-wide spending, you can look at agency spending, and you can see
[01:02:33] at agency spending, and you can see exactly where the money goes. Um so,
[01:02:36] exactly where the money goes. Um so, once you understand the numbers and you
[01:02:37] once you understand the numbers and you realize the magnitude, you understand
[01:02:39] realize the magnitude, you understand that there's no other business like
[01:02:40] that there's no other business like this. What makes this business great is
[01:02:42] this. What makes this business great is because I don't have to go looking for
[01:02:44] because I don't have to go looking for my client. So, there's no ad spend,
[01:02:46] my client. So, there's no ad spend, there's no nothing, which goes into the
[01:02:48] there's no nothing, which goes into the procurement process.
[01:02:50] procurement process. To become a government contractor is
[01:02:52] To become a government contractor is very uh cost-effective. You can actually
[01:02:55] very uh cost-effective. You can actually become a government contractor without
[01:02:56] become a government contractor without spending any money because you can uh
[01:02:59] spending any money because you can uh you don't have to even incorporate
[01:03:00] you don't have to even incorporate yourself. You can register on sam.gov as
[01:03:02] yourself. You can register on sam.gov as a sole proprietor with your social
[01:03:04] a sole proprietor with your social security number.
[01:03:05] security number. So, you can get registered with the
[01:03:06] So, you can get registered with the government for free. I wouldn't advise
[01:03:08] government for free. I wouldn't advise it because once you start making money,
[01:03:09] it because once you start making money, now you're going to be taxed as an
[01:03:10] now you're going to be taxed as an individual. That's between you and your
[01:03:12] individual. That's between you and your accountant.
[01:03:13] accountant. But it's a very cost-effective process
[01:03:15] But it's a very cost-effective process if you were to go that route.
[01:03:16] if you were to go that route. Certification, once again, can be free.
[01:03:19] Certification, once again, can be free. You can do it all through the SBA, go
[01:03:20] You can do it all through the SBA, go through the process. Once you are
[01:03:22] through the process. Once you are registered and certified, meaning you
[01:03:24] registered and certified, meaning you have a CAGE code or UEI and some sort of
[01:03:26] have a CAGE code or UEI and some sort of certifications, now you can start going
[01:03:28] certifications, now you can start going through the process of finding work.
[01:03:30] through the process of finding work. There's multiple ways to find work. So,
[01:03:32] There's multiple ways to find work. So, sam.gov,
[01:03:33] sam.gov, um which is the main portal for federal
[01:03:35] um which is the main portal for federal contracts, has they list contracts over
[01:03:38] contracts, has they list contracts over $25,000. So, anything that happens over
[01:03:41] $25,000. So, anything that happens over $25,000 must be put on sam.gov. It has
[01:03:43] $25,000 must be put on sam.gov. It has to be public knowledge.
[01:03:45] to be public knowledge. Anything under $25,000
[01:03:48] Anything under $25,000 can fall under your micro-purchase and
[01:03:50] can fall under your micro-purchase and simplified acquisition thresholds, which
[01:03:52] simplified acquisition thresholds, which is that's where your personal
[01:03:53] is that's where your personal relationships come in, okay?
[01:03:55] relationships come in, okay? So, one of the first things you got to
[01:03:57] So, one of the first things you got to decide is, I tell people you got to
[01:03:58] decide is, I tell people you got to understand who you're going to be
[01:03:59] understand who you're going to be working with. So, what agencies buy what
[01:04:01] working with. So, what agencies buy what you sell? They buy everything. You just
[01:04:04] you sell? They buy everything. You just have to figure out who buys what you
[01:04:05] have to figure out who buys what you sell. Once you figure out who buys what
[01:04:07] sell. Once you figure out who buys what you sell, then you need to figure out
[01:04:09] you sell, then you need to figure out how they buy it. So, how do they procure
[01:04:11] how they buy it. So, how do they procure what it is that I sell? Do they use
[01:04:13] what it is that I sell? Do they use credit cards? Do they use long-term
[01:04:15] credit cards? Do they use long-term contracts? Do they use single-source
[01:04:17] contracts? Do they use single-source contracts?
[01:04:18] contracts? Once you determine those things, then
[01:04:20] Once you determine those things, then you just need to determine when they're
[01:04:21] you just need to determine when they're going to buy it.
[01:04:22] going to buy it. You can go on acquisition.gov and you
[01:04:25] You can go on acquisition.gov and you can pull up the procurement forecast
[01:04:26] can pull up the procurement forecast from every agency.
[01:04:28] from every agency. See, in order for the government to get
[01:04:29] See, in order for the government to get their budgets allocated, they have to
[01:04:31] their budgets allocated, they have to create a a forecast of how they are
[01:04:33] create a a forecast of how they are going to spend money and how much money
[01:04:35] going to spend money and how much money they want. That forecast goes to
[01:04:36] they want. That forecast goes to Congress every year. Then Congress
[01:04:38] Congress every year. Then Congress determines, "This is how much money you
[01:04:39] determines, "This is how much money you get."
[01:04:41] get." So, you can pull up all of that
[01:04:42] So, you can pull up all of that information on acquisition.gov. So, now
[01:04:45] information on acquisition.gov. So, now you know who buys what you sell, you
[01:04:46] you know who buys what you sell, you know how they buy what you sell, and you
[01:04:48] know how they buy what you sell, and you know when they're going to buy it.
[01:04:50] know when they're going to buy it. Once you know those things, now it's
[01:04:52] Once you know those things, now it's just how are you going to sell it to
[01:04:53] just how are you going to sell it to them?
[01:04:54] them? And you go to work. Mhm. It's it's
[01:04:57] And you go to work. Mhm. It's it's A lot of times I get knocked because
[01:04:58] A lot of times I get knocked because people like, "Oh, you make it sound so
[01:05:00] people like, "Oh, you make it sound so easy."
[01:05:00] easy." >> [laughter]
[01:05:00] >> [laughter] >> I'm like, "No, it is that easy." The
[01:05:03] >> I'm like, "No, it is that easy." The problem is is that
[01:05:05] problem is is that you pull up a a solicitation and it's
[01:05:07] you pull up a a solicitation and it's 100 pages long.
[01:05:09] 100 pages long. There's five pages that matter. The
[01:05:10] There's five pages that matter. The other 95, they just put in there cuz
[01:05:12] other 95, they just put in there cuz they're just government stuff they got
[01:05:14] they're just government stuff they got to put in there. The problem is nobody's
[01:05:15] to put in there. The problem is nobody's ever taught you how to read it. You see
[01:05:17] ever taught you how to read it. You see 100 pages and you're like, "Yeah, I'm
[01:05:18] 100 pages and you're like, "Yeah, I'm out of that. I'm not reading 100 pages."
[01:05:19] out of that. I'm not reading 100 pages." But it's just five pages that matter.
[01:05:22] But it's just five pages that matter. So, once people understand exactly what
[01:05:24] So, once people understand exactly what to look for and what matters, it's not a
[01:05:25] to look for and what matters, it's not a hard process.
[01:05:27] hard process. It has to be easy because the government
[01:05:30] It has to be easy because the government is the most systematized client in the
[01:05:32] is the most systematized client in the world. They have systems, SOPs,
[01:05:34] world. They have systems, SOPs, everything. I don't know if you if you
[01:05:36] everything. I don't know if you if you military I know anybody prior military,
[01:05:38] military I know anybody prior military, but if you know military people,
[01:05:39] but if you know military people, everything is a is a standard operating
[01:05:41] everything is a is a standard operating procedure. They have a standard
[01:05:43] procedure. They have a standard operating procedure literally for how
[01:05:44] operating procedure literally for how they tie their shoes.
[01:05:45] they tie their shoes. Like, that's why every military person
[01:05:47] Like, that's why every military person looks the exact same when they stand in
[01:05:48] looks the exact same when they stand in a gig line. Like, your your crease got
[01:05:50] a gig line. Like, your your crease got to be a certain way, your your tie got
[01:05:52] to be a certain way, your your tie got to be a certain way, it got to be a
[01:05:53] to be a certain way, it got to be a certain length, your shoes have to be
[01:05:54] certain length, your shoes have to be shined a certain way. They have a
[01:05:56] shined a certain way. They have a procedure for everything they do. All
[01:05:58] procedure for everything they do. All you have to do is learn the procedure.
[01:06:00] you have to do is learn the procedure. Once you learn the procedure for
[01:06:01] Once you learn the procedure for whatever agency you're trying to sell
[01:06:03] whatever agency you're trying to sell for, it's not that serious.
[01:06:05] for, it's not that serious. Now, where it becomes difficult is when
[01:06:06] Now, where it becomes difficult is when you want to go out here and try mis- try
[01:06:08] you want to go out here and try mis- try to be Mr. end-all, be-all for everybody.
[01:06:10] to be Mr. end-all, be-all for everybody. It's not going to happen. That's too
[01:06:12] It's not going to happen. That's too many procedures to learn.
[01:06:13] many procedures to learn. Figure out who buys what you sell, how
[01:06:15] Figure out who buys what you sell, how they buy what you sell, when they're
[01:06:16] they buy what you sell, when they're going to buy it, and how you're going to
[01:06:17] going to buy it, and how you're going to sell it to them, and you're done.
[01:06:19] sell it to them, and you're done. I love it. You said agencies. Can you
[01:06:21] I love it. You said agencies. Can you break down [snorts] what an agency is
[01:06:22] break down [snorts] what an agency is and what agencies people should or
[01:06:25] and what agencies people should or should not focus on? Kind of go into
[01:06:27] should not focus on? Kind of go into that a little bit.
[01:06:27] that a little bit. >> Yeah, most def. So, uh government
[01:06:29] >> Yeah, most def. So, uh government agencies are basically the way the
[01:06:31] agencies are basically the way the government works is you have the main
[01:06:33] government works is you have the main So, there's
[01:06:34] So, there's before I go into agencies, let's talk
[01:06:35] before I go into agencies, let's talk about the different types of government.
[01:06:36] about the different types of government. >> Okay. So, you have federal, local, and
[01:06:39] >> Okay. So, you have federal, local, and state. Okay? So, there's three different
[01:06:41] state. Okay? So, there's three different levels you can do government
[01:06:42] levels you can do government contracting. You can do business on a
[01:06:44] contracting. You can do business on a federal level, meaning you're working
[01:06:45] federal level, meaning you're working with the United States federal
[01:06:46] with the United States federal government. You can do state level,
[01:06:48] government. You can do state level, which is your 50 states, or you can do
[01:06:50] which is your 50 states, or you can do local, which is going to be your cities,
[01:06:52] local, which is going to be your cities, towns, parishes within each one of those
[01:06:55] towns, parishes within each one of those states.
[01:06:56] states. The main differences between the three
[01:06:58] The main differences between the three are literally just complexity. When
[01:07:00] are literally just complexity. When you're dealing with the federal
[01:07:01] you're dealing with the federal government, the federal government
[01:07:02] government, the federal government operates the same across every agency,
[01:07:05] operates the same across every agency, across the entire world. If you do
[01:07:07] across the entire world. If you do business with the Veterans
[01:07:08] business with the Veterans Administration in Los Angeles, it's it
[01:07:10] Administration in Los Angeles, it's it works the exact same as if you're doing
[01:07:11] works the exact same as if you're doing business with the Department of State in
[01:07:13] business with the Department of State in Taiwan.
[01:07:14] Taiwan. It's the same process. It's the same
[01:07:16] It's the same process. It's the same forms. It's the same everything.
[01:07:19] forms. It's the same everything. When you go down to your states, Georgia
[01:07:21] When you go down to your states, Georgia might work different than Texas. Texas
[01:07:23] might work different than Texas. Texas might work different than Alabama.
[01:07:25] might work different than Alabama. Alabama might work different than
[01:07:26] Alabama might work different than Michigan. So, you have to learn how each
[01:07:28] Michigan. So, you have to learn how each state operates. When you go to your
[01:07:29] state operates. When you go to your cities,
[01:07:31] cities, Philadelphia works completely different
[01:07:33] Philadelphia works completely different than Camden. Camden works completely
[01:07:35] than Camden. Camden works completely different than Jersey City. Jersey City
[01:07:37] different than Jersey City. Jersey City don't look nothing like Newark. Nobody
[01:07:39] don't look nothing like Newark. Nobody looks like New York.
[01:07:40] looks like New York. Right? It's like it it every city. So,
[01:07:43] Right? It's like it it every city. So, depending on how you want to learn the
[01:07:45] depending on how you want to learn the game, that determines whether you want
[01:07:46] game, that determines whether you want to do federal, local, or state. So, then
[01:07:49] to do federal, local, or state. So, then within each of those different levels,
[01:07:50] within each of those different levels, you then have agencies.
[01:07:53] you then have agencies. So, on the federal level, your agencies
[01:07:55] So, on the federal level, your agencies are going to be like Department of
[01:07:56] are going to be like Department of Defense. So, that's your branches of the
[01:07:57] Defense. So, that's your branches of the military. You're going to have the
[01:07:59] military. You're going to have the Veterans Administration. That's going to
[01:08:00] Veterans Administration. That's going to be your VA hospitals. You have Health
[01:08:02] be your VA hospitals. You have Health and Human Services. You have Social
[01:08:04] and Human Services. You have Social Security.
[01:08:05] Security. Um
[01:08:05] Um you have all these different agencies.
[01:08:07] you have all these different agencies. Then every agency has what they call
[01:08:09] Then every agency has what they call sub-agencies, which are their different
[01:08:10] sub-agencies, which are their different branches. But
[01:08:12] branches. But you need to learn what agencies buy what
[01:08:15] you need to learn what agencies buy what it is that you sell because
[01:08:17] it is that you sell because where a lot of people mess up is
[01:08:20] where a lot of people mess up is they'll try to get in the game and
[01:08:22] they'll try to get in the game and they'll try to go to an agency that they
[01:08:23] they'll try to go to an agency that they think is easy.
[01:08:26] think is easy. But that agency might not buy what they
[01:08:27] But that agency might not buy what they sell.
[01:08:29] sell. And so, if you're going to try to do
[01:08:30] And so, if you're going to try to do work with an agency, but they don't buy
[01:08:31] work with an agency, but they don't buy what you sell, they may love you as a
[01:08:33] what you sell, they may love you as a person.
[01:08:34] person. They just don't buy what you sell.
[01:08:36] They just don't buy what you sell. So, that's why you have to understand
[01:08:37] So, that's why you have to understand who buys what I sell. And that's a very
[01:08:39] who buys what I sell. And that's a very simple thing for people if you're trying
[01:08:41] simple thing for people if you're trying to figure out who buys what you sell,
[01:08:42] to figure out who buys what you sell, literally all you have to do is go on
[01:08:43] literally all you have to do is go on usaspending.gov.
[01:08:45] usaspending.gov. When you go on usaspending.gov, you just
[01:08:48] When you go on usaspending.gov, you just do a search by NAICS code. So, your
[01:08:49] do a search by NAICS code. So, your North American Industry Classification.
[01:08:52] North American Industry Classification. Um that's the codes that you give
[01:08:53] Um that's the codes that you give yourself when you register your
[01:08:54] yourself when you register your business. Like, what do you do? Okay,
[01:08:56] business. Like, what do you do? Okay, I'm a trucking company. Okay, you're
[01:08:57] I'm a trucking company. Okay, you're 5414439.
[01:08:59] 5414439. I'm a construction company. Okay, you're
[01:09:00] I'm a construction company. Okay, you're 236, you know, 00, whatever you are. So,
[01:09:03] 236, you know, 00, whatever you are. So, whatever you do, there's a NAICS code
[01:09:05] whatever you do, there's a NAICS code associated with
[01:09:06] associated with You figure out what your NAICS code is,
[01:09:08] You figure out what your NAICS code is, go on usaspending, put that NAICS code
[01:09:10] go on usaspending, put that NAICS code in, and then it'll show you the agencies
[01:09:11] in, and then it'll show you the agencies that buy that NAICS code.
[01:09:13] that buy that NAICS code. And now you target those agencies.
[01:09:16] And now you target those agencies. That's how you
[01:09:17] That's how you That's the secret sauce.
[01:09:18] That's the secret sauce. >> That's the sauce. I got [laughter] it. I
[01:09:20] >> That's the sauce. I got [laughter] it. I got it. And what is the FAR? Oh, man.
[01:09:23] got it. And what is the FAR? Oh, man. So, the FAR is the Federal Acquisition
[01:09:24] So, the FAR is the Federal Acquisition Regulations. So, the FAR is essentially
[01:09:27] Regulations. So, the FAR is essentially that's our government contracting Bible.
[01:09:30] that's our government contracting Bible. So, the FAR, like I said, Federal
[01:09:31] So, the FAR, like I said, Federal Acquisition Regulation, that is what
[01:09:33] Acquisition Regulation, that is what determines how things are done. So, it's
[01:09:36] determines how things are done. So, it's basically the rule book.
[01:09:38] basically the rule book. So, just like any game, you got to learn
[01:09:41] So, just like any game, you got to learn the rules before you play the game.
[01:09:43] the rules before you play the game. You know, chess and checkers are played
[01:09:44] You know, chess and checkers are played on the same board, completely different
[01:09:46] on the same board, completely different games, right?
[01:09:47] games, right? That's the same thing with government
[01:09:48] That's the same thing with government contracting. So, the FAR, you just I
[01:09:51] contracting. So, the FAR, you just I tell people
[01:09:52] tell people you should read it once in your life so
[01:09:54] you should read it once in your life so you can say you read it, but you should
[01:09:56] you can say you read it, but you should know how to reference it. Because when
[01:09:58] know how to reference it. Because when you pull up solicitations, they're going
[01:10:00] you pull up solicitations, they're going to reference FAR clauses.
[01:10:02] to reference FAR clauses. So, then you need to know how to go back
[01:10:03] So, then you need to know how to go back in the FAR and understand what they're
[01:10:04] in the FAR and understand what they're meaning. Cuz you'll see a paragraph that
[01:10:06] meaning. Cuz you'll see a paragraph that says such and such and such and such,
[01:10:08] says such and such and such and such, and then in parentheses it'll say FAR
[01:10:09] and then in parentheses it'll say FAR 239.3.3-6.
[01:10:12] So, then you need to know how to go in
[01:10:14] So, then you need to know how to go in the FAR and say, "Okay, what does that
[01:10:15] the FAR and say, "Okay, what does that mean?"
[01:10:16] mean?" Because what happens is is they'll say,
[01:10:17] Because what happens is is they'll say, "This is the rules of the game for this
[01:10:20] "This is the rules of the game for this particular solicitation. It falls under
[01:10:22] particular solicitation. It falls under this FAR clause." So, the FAR is it's
[01:10:25] this FAR clause." So, the FAR is it's it's a massive publication.
[01:10:27] it's a massive publication. Once again, thank God for the internet
[01:10:29] Once again, thank God for the internet cuz back in my day there was no internet
[01:10:31] cuz back in my day there was no internet and we literally would have to order the
[01:10:32] and we literally would have to order the FAR off line and it was like the
[01:10:34] FAR off line and it was like the Encyclopedia Britannica, big book like
[01:10:37] Encyclopedia Britannica, big book like this and you would sit it on your desk
[01:10:38] this and you would sit it on your desk and you'd have to skim through it. Now,
[01:10:39] and you'd have to skim through it. Now, you can literally go on
[01:10:41] you can literally go on on acquisition.gov, on far.gov and you
[01:10:43] on acquisition.gov, on far.gov and you can pull up the FAR and you can read
[01:10:44] can pull up the FAR and you can read about the different things. Um it's
[01:10:47] about the different things. Um it's ever-changing. It's going through a lot
[01:10:48] ever-changing. It's going through a lot of changes right now.
[01:10:50] of changes right now. Uh a lot of good changes. Some changes a
[01:10:52] Uh a lot of good changes. Some changes a lot of people don't like, but there are
[01:10:53] lot of people don't like, but there are a lot of changes going on with the FAR
[01:10:54] a lot of changes going on with the FAR right now to uh to to change the way the
[01:10:56] right now to uh to to change the way the procurement process is being done. Just
[01:10:58] procurement process is being done. Just to bring it up to date, you know,
[01:11:00] to bring it up to date, you know, because
[01:11:01] because life doesn't operate now the way it
[01:11:02] life doesn't operate now the way it operated 20 years ago. So, the FAR can't
[01:11:04] operated 20 years ago. So, the FAR can't operate the same way. Right. So, you
[01:11:06] operate the same way. Right. So, you mentioned about researching what the
[01:11:08] mentioned about researching what the different agencies buy, right? Knowing
[01:11:10] different agencies buy, right? Knowing what the agencies buy. What about
[01:11:12] what the agencies buy. What about bidding? How does the bidding process
[01:11:14] bidding? How does the bidding process work?
[01:11:15] work? So, the bidding process is
[01:11:17] So, the bidding process is essentially is very simple
[01:11:19] essentially is very simple um because it follows the FAR.
[01:11:22] um because it follows the FAR. So, the way the bidding process works in
[01:11:24] So, the way the bidding process works in federal procurement is there's different
[01:11:25] federal procurement is there's different levels of procurement in the FAR based
[01:11:28] levels of procurement in the FAR based on contract size.
[01:11:30] on contract size. So, from 0 to 10,000 is what falls under
[01:11:34] So, from 0 to 10,000 is what falls under what we call micro purchases. So, micro
[01:11:36] what we call micro purchases. So, micro purchases don't require any procurement,
[01:11:38] purchases don't require any procurement, meaning
[01:11:39] meaning I know you
[01:11:41] I know you I want to buy something from you and
[01:11:42] I want to buy something from you and you're selling it to me for five grand,
[01:11:44] you're selling it to me for five grand, I don't have to go ask for permission,
[01:11:46] I don't have to go ask for permission, it's a micro purchase.
[01:11:48] it's a micro purchase. From 10,000 to what's now, they just
[01:11:51] From 10,000 to what's now, they just changed it in October, the simplified
[01:11:53] changed it in October, the simplified acquisition threshold is 350,000. So,
[01:11:56] acquisition threshold is 350,000. So, this is where a lot of your small
[01:11:57] this is where a lot of your small businesses play, from 10,000 to 350,000.
[01:12:00] businesses play, from 10,000 to 350,000. So, in simplified acquisitions, what
[01:12:02] So, in simplified acquisitions, what that means is that they don't have to go
[01:12:03] that means is that they don't have to go through a full procurement process. They
[01:12:06] through a full procurement process. They can cut back some of the paperwork and
[01:12:08] can cut back some of the paperwork and it's typically being done with small
[01:12:09] it's typically being done with small businesses.
[01:12:11] businesses. From 350 up to I think five or seven,
[01:12:14] From 350 up to I think five or seven, there's a different level and then five
[01:12:16] there's a different level and then five to seven on up, there's a different
[01:12:18] to seven on up, there's a different level. So, the first thing you got to do
[01:12:19] level. So, the first thing you got to do is you got to understand what level of
[01:12:21] is you got to understand what level of the game you want to play in.
[01:12:23] the game you want to play in. Once you understand what level of game
[01:12:24] Once you understand what level of game you want to play in, then you can
[01:12:26] you want to play in, then you can understand the FAR and how it dictates
[01:12:28] understand the FAR and how it dictates that level. How do you determine that?
[01:12:29] that level. How do you determine that? What level you want to play at? That's a
[01:12:31] What level you want to play at? That's a that's honestly I tell a lot of my
[01:12:33] that's honestly I tell a lot of my people that's a personal choice. Like I
[01:12:35] people that's a personal choice. Like I never tell anybody how much cuz people
[01:12:37] never tell anybody how much cuz people are like, "Well, how much money can you
[01:12:38] are like, "Well, how much money can you make?" I'm like, "How much money do you
[01:12:39] make?" I'm like, "How much money do you want to make?"
[01:12:40] want to make?" You know, Lockheed Martin, I just was
[01:12:42] You know, Lockheed Martin, I just was pulling up data, Lockheed Martin was
[01:12:44] pulling up data, Lockheed Martin was awarded a $1.7 trillion contract last
[01:12:46] awarded a $1.7 trillion contract last year.
[01:12:47] year. There's and literally that $1.7 trillion
[01:12:49] There's and literally that $1.7 trillion contract was written on the same piece
[01:12:51] contract was written on the same piece of paper as a $10,000 contract. Hm.
[01:12:53] of paper as a $10,000 contract. Hm. So, the work to do it is it's no
[01:12:55] So, the work to do it is it's no different. It's really what do you want
[01:12:57] different. It's really what do you want from it? Um But you have to have the
[01:12:59] from it? Um But you have to have the capability. Uh naturally, yeah. Just to
[01:13:02] capability. Uh naturally, yeah. Just to do anything. But but it it
[01:13:04] do anything. But but it it the possibility
[01:13:06] the possibility is what people need to understand.
[01:13:08] is what people need to understand. >> Right. That's the that's where it
[01:13:09] >> Right. That's the that's where it starts.
[01:13:09] starts. >> That's where it starts. The possibility
[01:13:11] >> That's where it starts. The possibility for you to do anything you want to do in
[01:13:13] for you to do anything you want to do in government contracting is there. There's
[01:13:15] government contracting is there. There's a lot of uh
[01:13:17] a lot of uh ways to do government contracting now
[01:13:19] ways to do government contracting now that didn't exist like when I started.
[01:13:22] that didn't exist like when I started. So, and I'll talk about that in a
[01:13:23] So, and I'll talk about that in a second, but essentially from the
[01:13:24] second, but essentially from the procurement process
[01:13:26] procurement process you need to figure out
[01:13:28] you need to figure out what you want to sell. That's the first
[01:13:29] what you want to sell. That's the first thing.
[01:13:31] thing. So, you need to know what product or
[01:13:32] So, you need to know what product or service you're going to bring to the
[01:13:33] service you're going to bring to the market. Once you understand what product
[01:13:34] market. Once you understand what product or service you're going to bring to the
[01:13:35] or service you're going to bring to the market, then we go back to the who,
[01:13:36] market, then we go back to the who, what, when, where, and how, right?
[01:13:39] what, when, where, and how, right? Um and then depending on what product or
[01:13:42] Um and then depending on what product or service you're bringing to the market,
[01:13:43] service you're bringing to the market, it's going to be purchased in maybe like
[01:13:46] it's going to be purchased in maybe like two or three different ways.
[01:13:47] two or three different ways. One of the main ways is going to be your
[01:13:49] One of the main ways is going to be your direct contracts. So, that's where they
[01:13:51] direct contracts. So, that's where they want a XYZ service done, they come to
[01:13:53] want a XYZ service done, they come to you, you give them a price just for
[01:13:55] you, you give them a price just for that.
[01:13:56] that. The next way, which is how most things
[01:13:57] The next way, which is how most things are done now, are on some form of IDIQ,
[01:14:01] are done now, are on some form of IDIQ, which is an indefinite delivery
[01:14:02] which is an indefinite delivery indefinite quantity contract. What the
[01:14:04] indefinite quantity contract. What the government likes to do now is they like
[01:14:06] government likes to do now is they like to give contracts to people for multiple
[01:14:09] to give contracts to people for multiple years to do a list of different
[01:14:11] years to do a list of different services.
[01:14:12] services. >> [snorts]
[01:14:13] >> [snorts] >> You see this a lot specifically in the
[01:14:14] >> You see this a lot specifically in the transportation logistics space.
[01:14:16] transportation logistics space. They'll give, like we were just looking
[01:14:18] They'll give, like we were just looking at last night, FedEx's master contract
[01:14:21] at last night, FedEx's master contract expires in 2027.
[01:14:23] expires in 2027. They've had it for five years, right?
[01:14:25] They've had it for five years, right? So, in 2027, now FedEx has to go back
[01:14:27] So, in 2027, now FedEx has to go back and renegotiate their work their their
[01:14:28] and renegotiate their work their their rates for the next five years.
[01:14:30] rates for the next five years. They don't want to every time they need
[01:14:32] They don't want to every time they need to move a truck call FedEx for a quote.
[01:14:34] to move a truck call FedEx for a quote. It's too much work. Right. They want to
[01:14:36] It's too much work. Right. They want to give FedEx a five-year contract, put a
[01:14:38] give FedEx a five-year contract, put a large ceiling on it, and then they know
[01:14:39] large ceiling on it, and then they know for five years, FedEx just go do
[01:14:41] for five years, FedEx just go do whatever we want you to do for five
[01:14:42] whatever we want you to do for five years.
[01:14:43] years. That's how most contracts are done now.
[01:14:45] That's how most contracts are done now. Um and and those are
[01:14:48] Um and and those are in some ways easier to get because the
[01:14:50] in some ways easier to get because the competition is a little bit less cuz
[01:14:52] competition is a little bit less cuz nobody wants to do the work to get them.
[01:14:55] nobody wants to do the work to get them. Yeah. Yeah.
[01:14:55] Yeah. Yeah. >> So, that's that's the different levels
[01:14:57] >> So, that's that's the different levels of procurement. Okay. So, if if if I
[01:15:00] of procurement. Okay. So, if if if I don't know what product or service
[01:15:01] don't know what product or service [clears throat] I want to bring to the
[01:15:03] [clears throat] I want to bring to the market, but I know I want to be a
[01:15:04] market, but I know I want to be a government contractor, that's what I
[01:15:05] government contractor, that's what I know. How how how would you ideate Yeah,
[01:15:08] know. How how how would you ideate Yeah, super easy.
[01:15:09] super easy. >> products and services? Like ideas? What
[01:15:11] >> products and services? Like ideas? What what would you do? Where would you
[01:15:12] what would you do? Where would you start?
[01:15:12] start? >> Super easy. Um it's actually an exercise
[01:15:14] >> Super easy. Um it's actually an exercise I take a lot of people to.
[01:15:16] I take a lot of people to. All right. So, there's there's three
[01:15:18] All right. So, there's there's three sites, three main websites that
[01:15:21] sites, three main websites that we use for government contracting. All
[01:15:23] we use for government contracting. All right? sam.gov, which is the one that
[01:15:26] right? sam.gov, which is the one that everybody knows. That's where you go and
[01:15:27] everybody knows. That's where you go and get registered, that's also where you
[01:15:29] get registered, that's also where you find a lot of solicitations, right?
[01:15:32] find a lot of solicitations, right? usaspending.gov,
[01:15:34] usaspending.gov, that's where you're able to find past
[01:15:36] that's where you're able to find past award data.
[01:15:38] award data. And then acquisition.gov.
[01:15:39] And then acquisition.gov. acquisition.gov is where you're able to
[01:15:41] acquisition.gov is where you're able to find your future procurement list and
[01:15:43] find your future procurement list and your forecast.
[01:15:46] your forecast. So, once you understand the past,
[01:15:47] So, once you understand the past, present, and future, you can paint a
[01:15:49] present, and future, you can paint a proper picture. The place that I start
[01:15:51] proper picture. The place that I start with everybody is usaspending.gov. Why?
[01:15:54] with everybody is usaspending.gov. Why? Because history repeats itself and so
[01:15:56] Because history repeats itself and so does the government.
[01:15:57] does the government. They buy the same things over and over
[01:15:59] They buy the same things over and over and over and over again.
[01:16:02] and over and over again. The way I start with most people is
[01:16:04] The way I start with most people is there's
[01:16:05] there's there's two different ways, either
[01:16:06] there's two different ways, either you're in business and you're not. If
[01:16:08] you're in business and you're not. If you're in business already,
[01:16:10] you're in business already, take whatever it is that you do, drop it
[01:16:12] take whatever it is that you do, drop it in usaspending, and see how they buy it.
[01:16:15] in usaspending, and see how they buy it. They buy it, I promise you.
[01:16:17] They buy it, I promise you. Nobody to this day has been able to
[01:16:19] Nobody to this day has been able to stump me with an industry that the
[01:16:20] stump me with an industry that the government don't buy. I tell people all
[01:16:21] government don't buy. I tell people all the time like if you think you do
[01:16:22] the time like if you think you do something they don't buy, I promise you
[01:16:24] something they don't buy, I promise you test me and I'll find you a contract for
[01:16:25] test me and I'll find you a contract for it.
[01:16:26] it. That's the first way.
[01:16:28] That's the first way. But if you are not in business, say
[01:16:29] But if you are not in business, say you're you're just somebody that's like,
[01:16:30] you're you're just somebody that's like, "Hey, I just like you said, I just want
[01:16:32] "Hey, I just like you said, I just want to do this, but I don't know what I want
[01:16:33] to do this, but I don't know what I want to do." When you go on usaspending.gov,
[01:16:35] to do." When you go on usaspending.gov, what I want you to do is I want you to
[01:16:36] what I want you to do is I want you to type I want you to filter by your
[01:16:37] type I want you to filter by your location.
[01:16:39] location. So, put in your state first.
[01:16:41] So, put in your state first. After that, the next thing I want you to
[01:16:42] After that, the next thing I want you to do is I want you to filter it by
[01:16:44] do is I want you to filter it by whatever classification you may have.
[01:16:46] whatever classification you may have. Are you a veteran? Are you a woman? Or
[01:16:48] Are you a veteran? Are you a woman? Or are you just a small business?
[01:16:50] are you just a small business? Once you put those filters in, what it's
[01:16:51] Once you put those filters in, what it's going to do is it's going to then show
[01:16:53] going to do is it's going to then show you what they buy
[01:16:55] you what they buy in your location with your
[01:16:57] in your location with your classification type.
[01:16:59] classification type. And then we do what's called a top five.
[01:17:01] And then we do what's called a top five. So, I tell everybody create a top five,
[01:17:04] So, I tell everybody create a top five, which is the top five agencies and the
[01:17:06] which is the top five agencies and the top five NAICS codes.
[01:17:08] top five NAICS codes. Once you understand the top five NAICS
[01:17:09] Once you understand the top five NAICS codes and the top five agencies, now you
[01:17:11] codes and the top five agencies, now you decide what you want to sell.
[01:17:13] decide what you want to sell. Because now we're not
[01:17:15] Because now we're not creating business based on what we
[01:17:16] creating business based on what we think, we're creating business based on
[01:17:18] think, we're creating business based on what they want. So, the difference
[01:17:19] what they want. So, the difference between government contracting and
[01:17:20] between government contracting and regular business is when people start
[01:17:22] regular business is when people start regular businesses, they start it based
[01:17:24] regular businesses, they start it based off of what they like.
[01:17:26] off of what they like. I'm going to start a barber shop cuz I
[01:17:27] I'm going to start a barber shop cuz I love to cut hair.
[01:17:29] love to cut hair. Well, you ain't got no clients. Yeah,
[01:17:30] Well, you ain't got no clients. Yeah, no, but I just love to cut hair.
[01:17:32] no, but I just love to cut hair. Yeah, that's a passion, that's not a
[01:17:33] Yeah, that's a passion, that's not a business, that's a hobby, right?
[01:17:36] business, that's a hobby, right? Government contracting is not a hobby. I
[01:17:37] Government contracting is not a hobby. I sell what the government buys. I don't
[01:17:38] sell what the government buys. I don't care what they buy, I'm going to sell it
[01:17:40] care what they buy, I'm going to sell it to them.
[01:17:41] to them. Um the thing that people have to
[01:17:43] Um the thing that people have to understand is there's essentially five
[01:17:45] understand is there's essentially five major categories that the government
[01:17:46] major categories that the government buys.
[01:17:48] buys. Healthcare,
[01:17:49] Healthcare, IT,
[01:17:50] IT, defense,
[01:17:51] defense, construction, and facilities.
[01:17:53] construction, and facilities. Those are going to be your top five
[01:17:55] Those are going to be your top five things that the government buys. That's
[01:17:56] things that the government buys. That's not to say you can't sell something
[01:17:58] not to say you can't sell something outside of those five, but those are the
[01:17:59] outside of those five, but those are the top five things that the government buys
[01:18:01] top five things that the government buys year in year out on a consistent basis.
[01:18:04] year in year out on a consistent basis. So, I tell people if you if you want an
[01:18:06] So, I tell people if you if you want an easy start, start with one of those five
[01:18:07] easy start, start with one of those five cuz they're going to buy those five.
[01:18:09] cuz they're going to buy those five. If you don't like those five, then dive
[01:18:11] If you don't like those five, then dive into something else.
[01:18:12] into something else. But they buy everything.
[01:18:14] But they buy everything. I love it. What are some of the common
[01:18:15] I love it. What are some of the common mistakes people make when bidding?
[01:18:19] Not getting help.
[01:18:21] Not getting help. The biggest thing you can do in
[01:18:22] The biggest thing you can do in government contracting is not get proper
[01:18:24] government contracting is not get proper help.
[01:18:25] help. Cuz even the big guys, they get help.
[01:18:28] Cuz even the big guys, they get help. The big boys, when they're putting
[01:18:29] The big boys, when they're putting together those big multi-year,
[01:18:30] together those big multi-year, multi-million, multi-billion dollar
[01:18:32] multi-million, multi-billion dollar contracts, they're hiring consultants to
[01:18:34] contracts, they're hiring consultants to come in and help them craft those
[01:18:35] come in and help them craft those solicitations. Hm. You should be doing
[01:18:37] solicitations. Hm. You should be doing the same. The biggest mistake you can
[01:18:39] the same. The biggest mistake you can get is not get proper help when putting
[01:18:40] get is not get proper help when putting together a solicitation.
[01:18:42] together a solicitation. And a lot of times, especially now, like
[01:18:45] And a lot of times, especially now, like getting proper help doesn't necessarily
[01:18:46] getting proper help doesn't necessarily have to cost you money.
[01:18:48] have to cost you money. You can get people to come in for equity
[01:18:50] You can get people to come in for equity stakes in the in the proposal. Like you
[01:18:52] stakes in the in the proposal. Like you can get people to work with you. In
[01:18:53] can get people to work with you. In government contracting we call it
[01:18:55] government contracting we call it teaming.
[01:18:56] teaming. So, I can put teaming partners on with
[01:18:58] So, I can put teaming partners on with me. And I say, "Okay, hey, I want to
[01:19:00] me. And I say, "Okay, hey, I want to bring you in on this solicitation.
[01:19:01] bring you in on this solicitation. You're going to be my strategic teaming
[01:19:02] You're going to be my strategic teaming partner and this is what you're going to
[01:19:04] partner and this is what you're going to handle."
[01:19:05] handle." And you can put together these teams
[01:19:06] And you can put together these teams because that's what the big boys do.
[01:19:08] because that's what the big boys do. They don't fight against each other
[01:19:09] They don't fight against each other because there's one common goal and
[01:19:10] because there's one common goal and that's to service the government. Is
[01:19:12] that's to service the government. Is that like uh prime and sub? Or is that
[01:19:15] that like uh prime and sub? Or is that that's something different?
[01:19:16] that's something different? >> Completely different. So, prime and sub
[01:19:18] >> Completely different. So, prime and sub is where I'm I go get the main contract,
[01:19:20] is where I'm I go get the main contract, then I subcontract a portion of the work
[01:19:22] then I subcontract a portion of the work to you. Teaming is me and you come
[01:19:25] to you. Teaming is me and you come together to service the government as a
[01:19:27] together to service the government as a unit.
[01:19:28] unit. Very different than joint ventures.
[01:19:30] Very different than joint ventures. Joint ventures are for a specific time
[01:19:32] Joint ventures are for a specific time for a specific project. Teaming can be
[01:19:36] for a specific project. Teaming can be whatever. We can have a strategic
[01:19:38] whatever. We can have a strategic teaming partnership that lasts forever.
[01:19:40] teaming partnership that lasts forever. If we create a joint venture, it's a for
[01:19:42] If we create a joint venture, it's a for a specific project. So, teaming is how
[01:19:45] a specific project. So, teaming is how government contracting is really done at
[01:19:47] government contracting is really done at the highest level. But both sides of the
[01:19:49] the highest level. But both sides of the team don't both have to be contractors.
[01:19:51] team don't both have to be contractors. Only one person has to have the
[01:19:53] Only one person has to have the contract?
[01:19:53] contract? >> Yeah. It can go it it can go on one
[01:19:55] >> Yeah. It can go it it can go on one person, and sometimes we'll do that,
[01:19:56] person, and sometimes we'll do that, too. As we'll say, "Okay, you'll be
[01:19:58] too. As we'll say, "Okay, you'll be like, 'AK, you're a little bit stronger
[01:19:59] like, 'AK, you're a little bit stronger than this, you take the lead.'" And I'll
[01:20:01] than this, you take the lead.'" And I'll take the lead, and then you'll be my
[01:20:02] take the lead, and then you'll be my teaming partners for the rest. Yep.
[01:20:04] teaming partners for the rest. Yep. Okay. All right, let's talk about some
[01:20:06] Okay. All right, let's talk about some certifications, man. Certif- In in the
[01:20:08] certifications, man. Certif- In in the certification side, what certifications
[01:20:10] certification side, what certifications matter the most, or what are the ones
[01:20:12] matter the most, or what are the ones that you really want to kind of look at?
[01:20:14] that you really want to kind of look at? So,
[01:20:15] So, I'm going to catch a lot of heat for
[01:20:17] I'm going to catch a lot of heat for this whole certification talk, and I'm
[01:20:19] this whole certification talk, and I'm just going to tell you now before it
[01:20:20] just going to tell you now before it even comes out of my mouth.
[01:20:22] even comes out of my mouth. >> [clears throat]
[01:20:24] >> [clears throat] >> Certifications are slippery slope.
[01:20:26] >> Certifications are slippery slope. Here's why I say.
[01:20:29] Most times people try to get
[01:20:31] Most times people try to get certifications as a means to win
[01:20:34] certifications as a means to win contracts easier.
[01:20:36] contracts easier. The problem with certifications is if
[01:20:39] The problem with certifications is if you don't know how to do the work,
[01:20:41] you don't know how to do the work, certifications can handicap you.
[01:20:44] certifications can handicap you. Because certifications will steal your
[01:20:45] Because certifications will steal your growth because you don't know how to
[01:20:47] growth because you don't know how to grow without them.
[01:20:48] grow without them. So,
[01:20:50] So, on the federal level, your primary
[01:20:52] on the federal level, your primary certifications are
[01:20:53] certifications are small business, which a small business
[01:20:55] small business, which a small business is classified as any business that
[01:20:57] is classified as any business that operates under its NAICS code threshold,
[01:21:00] operates under its NAICS code threshold, um and has or if it's a manufacturing
[01:21:02] um and has or if it's a manufacturing business has under a certain number of
[01:21:03] business has under a certain number of employees, right? So, typically it's 500
[01:21:06] employees, right? So, typically it's 500 employees, and for size standard-wise,
[01:21:08] employees, and for size standard-wise, it can be anywhere between 20 to 40
[01:21:10] it can be anywhere between 20 to 40 million dollars a year in revenue. So,
[01:21:13] million dollars a year in revenue. So, 99.9%
[01:21:14] 99.9% of all businesses in America are small.
[01:21:17] of all businesses in America are small. So, the minute you sign up on sam.gov,
[01:21:19] So, the minute you sign up on sam.gov, you're a small business. Right. Right?
[01:21:21] you're a small business. Right. Right? Literally, 99.9% of businesses are
[01:21:23] Literally, 99.9% of businesses are small.
[01:21:24] small. Next certification is going to be your
[01:21:27] Next certification is going to be your veteran classifications. So, that's your
[01:21:29] veteran classifications. So, that's your veteran-owned and service-disabled
[01:21:30] veteran-owned and service-disabled veteran-owned, okay? And if you don't
[01:21:33] veteran-owned, okay? And if you don't mind, I'd also like to talk about
[01:21:34] mind, I'd also like to talk about numbers as we talk about them.
[01:21:35] numbers as we talk about them. >> Let's do it.
[01:21:36] >> Let's do it. >> Cuz I'm Once again, I'm fact-based,
[01:21:37] >> Cuz I'm Once again, I'm fact-based, right?
[01:21:38] right? >> I love it.
[01:21:38] >> I love it. >> So, small businesses, which is that
[01:21:41] >> So, small businesses, which is that 99.9%, there's only 61,000 registered
[01:21:44] 99.9%, there's only 61,000 registered small businesses in America.
[01:21:47] small businesses in America. Veteran classifications. There's only
[01:21:49] Veteran classifications. There's only 5,500
[01:21:51] 5,500 service-disabled veteran businesses in
[01:21:53] service-disabled veteran businesses in America.
[01:21:54] America. I hate that stat because literally
[01:21:57] I hate that stat because literally there's millions of veterans in America.
[01:21:59] there's millions of veterans in America. Why are there only 5,500 companies?
[01:22:01] Why are there only 5,500 companies? Because they don't know how to become
[01:22:04] Because they don't know how to become registered, okay?
[01:22:06] registered, okay? >> [cough]
[01:22:06] >> [cough] >> After [clears throat] that, then you
[01:22:07] >> After [clears throat] that, then you have your women-owned.
[01:22:09] have your women-owned. So, women-owned businesses, there's only
[01:22:11] So, women-owned businesses, there's only 12,000 women-owned businesses in
[01:22:13] 12,000 women-owned businesses in America.
[01:22:14] America. There are millions of women in business,
[01:22:17] There are millions of women in business, but only 12,000 women-owned businesses.
[01:22:22] but only 12,000 women-owned businesses. The next one is going to be your 8(a),
[01:22:24] The next one is going to be your 8(a), which if you talk to most people, they
[01:22:26] which if you talk to most people, they talk about government contracting, and
[01:22:28] talk about government contracting, and I'm sure you've had people on here
[01:22:29] I'm sure you've had people on here before to talk about it, and they all
[01:22:30] before to talk about it, and they all say, "8(a), you got to go get your 8(a).
[01:22:32] say, "8(a), you got to go get your 8(a). 8(a) is the best thing in the world. Oh,
[01:22:33] 8(a) is the best thing in the world. Oh, if you want to get rich, you got to be
[01:22:34] if you want to get rich, you got to be 8(a)."
[01:22:35] 8(a)." Don't go get 8(a). I'm telling y'all,
[01:22:37] Don't go get 8(a). I'm telling y'all, don't go get 8(a). Don't go get 8(a).
[01:22:39] don't go get 8(a). Don't go get 8(a). Don't rush to get 8(a).
[01:22:40] Don't rush to get 8(a). >> Okay. Don't rush to get 8(a).
[01:22:42] >> Okay. Don't rush to get 8(a). >> Don't rush to get 8(a). I've been in
[01:22:43] >> Don't rush to get 8(a). I've been in business 17 years, and I still don't
[01:22:45] business 17 years, and I still don't have 8(a).
[01:22:47] have 8(a). I sold a business, I've made
[01:22:50] I sold a business, I've made a lot of money in government
[01:22:51] a lot of money in government contracting, and I have never got my
[01:22:52] contracting, and I have never got my 8(a) certification.
[01:22:54] 8(a) certification. Why? Because I learned how to do
[01:22:55] Why? Because I learned how to do government contracting, I didn't learn
[01:22:57] government contracting, I didn't learn how to utilize a certification.
[01:22:59] how to utilize a certification. Okay?
[01:23:00] Okay? The problem with 8(a) is that people get
[01:23:02] The problem with 8(a) is that people get the 8(a) certification, and they think
[01:23:04] the 8(a) certification, and they think that now they don't have to do any work
[01:23:06] that now they don't have to do any work because all they have to do is show up.
[01:23:08] because all they have to do is show up. What the 8(a) certification does is that
[01:23:10] What the 8(a) certification does is that the 8(a) certification was designed by
[01:23:11] the 8(a) certification was designed by the Small Business Administration to
[01:23:13] the Small Business Administration to help small businesses no longer become
[01:23:15] help small businesses no longer become small.
[01:23:17] small. So, the purpose of the 8(a)
[01:23:18] So, the purpose of the 8(a) certification is to take you to and
[01:23:21] certification is to take you to and above your size standard in 9 years. The
[01:23:24] above your size standard in 9 years. The 8(a) certification is a one and done.
[01:23:26] 8(a) certification is a one and done. So, that means once you get it, you can
[01:23:27] So, that means once you get it, you can never get it again. You have 9 years to
[01:23:29] never get it again. You have 9 years to maximize it.
[01:23:32] maximize it. I am not a fan of
[01:23:34] I am not a fan of telling people to get the certification
[01:23:36] telling people to get the certification because if you don't know how to use it,
[01:23:38] because if you don't know how to use it, when your 9 years is up, you're done.
[01:23:41] when your 9 years is up, you're done. The numbers are staggering at the
[01:23:42] The numbers are staggering at the failure rates of businesses that get
[01:23:45] failure rates of businesses that get 8(a)
[01:23:46] 8(a) and lose it.
[01:23:47] and lose it. Because the minute they don't have it
[01:23:48] Because the minute they don't have it anymore, you don't hear nothing else
[01:23:50] anymore, you don't hear nothing else from them cuz they never learned how to
[01:23:52] from them cuz they never learned how to do business. All they learned how to do
[01:23:53] do business. All they learned how to do was walk around and say, "I'm a 8(a).
[01:23:54] was walk around and say, "I'm a 8(a). I'm a 8(a). I'm a 8(a). I'm a 8(a)."
[01:23:58] I'm a 8(a). I'm a 8(a). I'm a 8(a)." So, that's my 8(a) talk, and the
[01:23:59] So, that's my 8(a) talk, and the comments are going to go crazy, they're
[01:24:00] comments are going to go crazy, they're going to kill me for that, but it is
[01:24:02] going to kill me for that, but it is what it is, like, you know what I'm
[01:24:03] what it is, like, you know what I'm saying? I'm not It is what it is. These
[01:24:05] saying? I'm not It is what it is. These are facts. Once again, if you Google the
[01:24:07] are facts. Once again, if you Google the failure rate of 8(a) businesses, it's
[01:24:09] failure rate of 8(a) businesses, it's staggering.
[01:24:10] staggering. The last one, which is my particular
[01:24:12] The last one, which is my particular favorite one, is your HUBZone. So,
[01:24:14] favorite one, is your HUBZone. So, that's your historically utilized
[01:24:16] that's your historically utilized historically underutilized business
[01:24:17] historically underutilized business zones. So, these are essentially
[01:24:18] zones. So, these are essentially businesses that operate in in in areas
[01:24:20] businesses that operate in in in areas that are not normally
[01:24:22] that are not normally business-generating areas, and they
[01:24:24] business-generating areas, and they employ people from areas that are not uh
[01:24:27] employ people from areas that are not uh business-generating areas. There's only
[01:24:28] business-generating areas. There's only 2,600 HUBZone businesses in the world.
[01:24:32] 2,600 HUBZone businesses in the world. Um amazing amazing amazing.
[01:24:33] Um amazing amazing amazing. >> 2,600?
[01:24:35] >> 2,600? >> 2,600 in the entire world.
[01:24:37] >> 2,600 in the entire world. That sounds crazy. So, when you add all
[01:24:39] That sounds crazy. So, when you add all those numbers up for all the different
[01:24:40] those numbers up for all the different certifications, it's about 100,000
[01:24:42] certifications, it's about 100,000 businesses.
[01:24:43] businesses. S- Wow.
[01:24:44] S- Wow. >> There's only about 100,000 people that
[01:24:46] >> There's only about 100,000 people that play this game at the highest level.
[01:24:48] play this game at the highest level. There's 36 million small businesses in
[01:24:50] There's 36 million small businesses in America. Only 100,000 play at the
[01:24:52] America. Only 100,000 play at the highest level.
[01:24:54] highest level. So, that's why I'm so like passionate
[01:24:55] So, that's why I'm so like passionate about not government contracting
[01:24:57] about not government contracting government contracting. People are like,
[01:24:58] government contracting. People are like, "Why you keep on I'm like, bro, it's
[01:24:59] "Why you keep on I'm like, bro, it's only 100,000 of us.
[01:25:01] only 100,000 of us. It's 36 million small businesses.
[01:25:04] It's 36 million small businesses. So, those are your certifications. Um
[01:25:06] So, those are your certifications. Um HUBZone's my personal favorite, but I
[01:25:08] HUBZone's my personal favorite, but I know the world's going to tell you 8(a).
[01:25:10] know the world's going to tell you 8(a). Got it, man. I love it. I love that
[01:25:12] Got it, man. I love it. I love that shift that that that mind shift of
[01:25:14] shift that that that mind shift of perspective, for sure. I've never heard
[01:25:16] perspective, for sure. I've never heard that before, man. I've heard 8(a) 8(a)
[01:25:18] that before, man. I've heard 8(a) 8(a) yeah.
[01:25:18] yeah. >> 8(a) 8(a) you know.
[01:25:20] >> 8(a) 8(a) you know. But I was taught real quick, I was
[01:25:22] But I was taught real quick, I was taught by uh
[01:25:25] taught by uh one of the small business officers with
[01:25:27] one of the small business officers with the United States Army Corps of
[01:25:29] the United States Army Corps of Engineers
[01:25:30] Engineers that
[01:25:31] that do not go get 8(a) until you're
[01:25:33] do not go get 8(a) until you're operating at about 75 or 80% of your
[01:25:35] operating at about 75 or 80% of your NAICS code.
[01:25:36] NAICS code. Because the purpose of 8(a) is to take
[01:25:38] Because the purpose of 8(a) is to take you above it. So, here's where 8(a)
[01:25:40] you above it. So, here's where 8(a) messes up. So, I'm in construction.
[01:25:42] messes up. So, I'm in construction. 237990 is my NAICS code, okay? $42
[01:25:44] 237990 is my NAICS code, okay? $42 million is is my size standard.
[01:25:47] million is is my size standard. So, until I'm doing
[01:25:49] So, until I'm doing >> [clears throat]
[01:25:50] >> [clears throat] >> at least $30 a year on my own,
[01:25:54] >> at least $30 a year on my own, 8(a) is not going to be beneficial.
[01:25:57] 8(a) is not going to be beneficial. >> [cough]
[01:25:57] >> [cough] >> Excuse me. And the reason being is
[01:25:59] >> Excuse me. And the reason being is because
[01:26:01] because if I go to the Army Corps with my 8(a),
[01:26:04] if I go to the Army Corps with my 8(a), and I say, "Hey, I'm a 8(a)," and they
[01:26:06] and I say, "Hey, I'm a 8(a)," and they can sole-source me. So, with 8(a), you
[01:26:07] can sole-source me. So, with 8(a), you can get sole-sourced up to $100 million
[01:26:09] can get sole-sourced up to $100 million from the Department of Defense in one
[01:26:11] from the Department of Defense in one transaction every day.
[01:26:13] transaction every day. So, that means that as an 8(a), you can
[01:26:15] So, that means that as an 8(a), you can go to the Army, hand them the paper, and
[01:26:16] go to the Army, hand them the paper, and they can give you a $100 million
[01:26:18] they can give you a $100 million contract every day of the year, and they
[01:26:20] contract every day of the year, and they don't have to justify it. They don't
[01:26:21] don't have to justify it. They don't have to tell people. The reason they
[01:26:23] have to tell people. The reason they tell you to go get 8(a) is because it is
[01:26:25] tell you to go get 8(a) is because it is a form of a simplifier simplified
[01:26:27] a form of a simplifier simplified acquisition where they don't have to go
[01:26:29] acquisition where they don't have to go through the procurement process. If you
[01:26:31] through the procurement process. If you walk in, you're a 8(a), they can give
[01:26:32] walk in, you're a 8(a), they can give you a contract.
[01:26:33] you a contract. The government loves it because they
[01:26:34] The government loves it because they hate paperwork. I tell people all the
[01:26:36] hate paperwork. I tell people all the time, people work for the government cuz
[01:26:37] time, people work for the government cuz they don't want to work.
[01:26:39] they don't want to work. >> [laughter]
[01:26:40] >> [laughter] >> Like, we all know like when when Think
[01:26:42] >> Like, we all know like when when Think about it, it's funny, but it's not
[01:26:43] about it, it's funny, but it's not funny. When we was younger, right, and
[01:26:45] funny. When we was younger, right, and we was coming up, what what what the
[01:26:47] we was coming up, what what what the your uncles your Boy, baby, baby, go get
[01:26:48] your uncles your Boy, baby, baby, go get you one of them government jobs.
[01:26:50] you one of them government jobs. >> Right.
[01:26:50] >> Right. >> to get you a pension, baby. Baby, my
[01:26:51] >> to get you a pension, baby. Baby, my pension finna kick in. Baby, I'm Boy,
[01:26:54] pension finna kick in. Baby, I'm Boy, baby, you better go get you a government
[01:26:55] baby, you better go get you a government job.
[01:26:55] job. >> That's a fact. Because they don't work.
[01:26:58] >> That's a fact. Because they don't work. Right.
[01:26:58] Right. >> They're easy. Ain't no Man, man, baby, I
[01:27:00] >> They're easy. Ain't no Man, man, baby, I ain't doing no work. I go to them folk
[01:27:01] ain't doing no work. I go to them folk job, I sit there, and then I leave.
[01:27:05] job, I sit there, and then I leave. They do They don't want to work. So,
[01:27:06] They do They don't want to work. So, that's why they tell you go get 8(a)
[01:27:07] that's why they tell you go get 8(a) because you come in with 8(a), oh man,
[01:27:09] because you come in with 8(a), oh man, great. I ain't got to put this on
[01:27:10] great. I ain't got to put this on sam.gov, I ain't got to review bids, I
[01:27:12] sam.gov, I ain't got to review bids, I could just
[01:27:13] could just And that's why they tell you to do it.
[01:27:14] And that's why they tell you to do it. But it it's pointless because if you
[01:27:17] But it it's pointless because if you don't have the bonding capacity to bond
[01:27:19] don't have the bonding capacity to bond a $20 million job, does it matter that
[01:27:21] a $20 million job, does it matter that they're going to give you a $100 million
[01:27:22] they're going to give you a $100 million job?
[01:27:23] job? You can't do it. Right. So, why you
[01:27:25] You can't do it. Right. So, why you going to get it? Right. Get your weight
[01:27:28] going to get it? Right. Get your weight up.
[01:27:28] up. >> on that real quick when you say the
[01:27:29] >> on that real quick when you say the bonding capacity, what that means. So,
[01:27:31] bonding capacity, what that means. So, in a lot of different a lot of different
[01:27:32] in a lot of different a lot of different industries, bonding becomes a thing,
[01:27:34] industries, bonding becomes a thing, right? So,
[01:27:35] right? So, bonding is a basically it's a form of uh
[01:27:37] bonding is a basically it's a form of uh protection. So, when you're doing
[01:27:38] protection. So, when you're doing construction, uh even in the trucking
[01:27:41] construction, uh even in the trucking space, you know, you have you see, you
[01:27:42] space, you know, you have you see, you know, like bonded deals and stuff like
[01:27:43] know, like bonded deals and stuff like that. It's it's protection.
[01:27:45] that. It's it's protection. So, if you don't have the financial
[01:27:46] So, if you don't have the financial capacity to get that insurance to
[01:27:49] capacity to get that insurance to protect the government, they won't even
[01:27:52] protect the government, they won't even give you certain jobs.
[01:27:54] give you certain jobs. And so,
[01:27:55] And so, what's the point of being a 8(a) where
[01:27:57] what's the point of being a 8(a) where you can get a $100 million contract, but
[01:27:58] you can get a $100 million contract, but you can't you can't get the finances to
[01:28:01] you can't you can't get the finances to do a $100 million job. You don't have
[01:28:03] do a $100 million job. You don't have the bonding to do it. You can't afford
[01:28:05] the bonding to do it. You can't afford the insurance policy. When you start
[01:28:07] the insurance policy. When you start getting to this level, your your
[01:28:08] getting to this level, your your insurance alone is going to run you two,
[01:28:10] insurance alone is going to run you two, three, $400,000 a year
[01:28:12] three, $400,000 a year just for general liability insurance. If
[01:28:15] just for general liability insurance. If you don't have the money to do that,
[01:28:16] you don't have the money to do that, then what's the point?
[01:28:18] then what's the point? So, like 8(a) to me, like, you got to
[01:28:19] So, like 8(a) to me, like, you got to get your weight up before you try to go
[01:28:21] get your weight up before you try to go do it. Can you get your weight up
[01:28:22] do it. Can you get your weight up through the process? Yes. But the
[01:28:24] through the process? Yes. But the problem is is that for 9 years, people
[01:28:27] problem is is that for 9 years, people were giving you stuff. It's like kids,
[01:28:29] were giving you stuff. It's like kids, right? If if if you never made your
[01:28:32] right? If if if you never made your child work for anything, and you just
[01:28:34] child work for anything, and you just gave them everything their whole life,
[01:28:35] gave them everything their whole life, what's going to happen to them when they
[01:28:35] what's going to happen to them when they hit the real world?
[01:28:37] hit the real world? They're going to be spoiled. They don't
[01:28:38] They're going to be spoiled. They don't know what to do.
[01:28:38] know what to do. >> Don't know what to do. They're stuck.
[01:28:39] >> Don't know what to do. They're stuck. That's what happens to these small
[01:28:40] That's what happens to these small businesses when they get 8(a). Yeah.
[01:28:43] businesses when they get 8(a). Yeah. They jump in the game, and they get
[01:28:44] They jump in the game, and they get 8(a), and within 2 years of being a
[01:28:46] 8(a), and within 2 years of being a business,
[01:28:47] business, now they're making all this money for 9
[01:28:48] now they're making all this money for 9 years. Certification ends, and now
[01:28:50] years. Certification ends, and now they're just standing there.
[01:28:51] they're just standing there. Now they're calling people, "Hey, you
[01:28:53] Now they're calling people, "Hey, you can you give me some work?" No, man, you
[01:28:54] can you give me some work?" No, man, you don't have your 8(a) no more.
[01:28:56] don't have your 8(a) no more. >> [laughter]
[01:28:56] >> [laughter] >> You you got to bid. Right. Well, well,
[01:28:58] >> You you got to bid. Right. Well, well, well, well, how do I bid? Well, you got
[01:29:00] well, well, how do I bid? Well, you got to go on sam, and you got to you got to
[01:29:01] to go on sam, and you got to you got to submit a bid. Well, I only see, you
[01:29:04] submit a bid. Well, I only see, you know, $200,000 contracts. I I I can't I
[01:29:07] know, $200,000 contracts. I I I can't I can't do none that cheap. I don't know
[01:29:08] can't do none that cheap. I don't know what to tell you. Right.
[01:29:10] what to tell you. Right. Right. They don't They don't know how to
[01:29:11] Right. They don't They don't know how to fish. They don't know how to fish cuz
[01:29:13] fish. They don't know how to fish cuz you didn't give them fish for 9 years.
[01:29:14] you didn't give them fish for 9 years. Wow. Wow, I love it. All right, let's
[01:29:16] Wow. Wow, I love it. All right, let's move along. Pricing and getting paid,
[01:29:19] move along. Pricing and getting paid, let's talk about that. How do you price
[01:29:20] let's talk about that. How do you price a government contract competitively?
[01:29:23] a government contract competitively? I'mma give you a real life scenario.
[01:29:25] I'mma give you a real life scenario. Talk to me.
[01:29:26] Talk to me. >> Right? And and and I'mma look at you and
[01:29:28] >> Right? And and and I'mma look at you and say, "If you don't run this play
[01:29:31] say, "If you don't run this play cuz I'mma give you a scenario that you
[01:29:32] cuz I'mma give you a scenario that you should run tomorrow. And I'mma tell you
[01:29:35] should run tomorrow. And I'mma tell you it
[01:29:35] it You feel me? I'mma give you a real I'mma
[01:29:37] You feel me? I'mma give you a real I'mma give you a real life one to talk about
[01:29:38] give you a real life one to talk about pricing. Before we do pricing, let's
[01:29:40] pricing. Before we do pricing, let's talk about payment. And then we'll go
[01:29:42] talk about payment. And then we'll go back to pricing.
[01:29:43] back to pricing. >> [snorts]
[01:29:44] >> [snorts] >> Payment has become so easy on government
[01:29:47] >> Payment has become so easy on government contracts. And the reason being is first
[01:29:48] contracts. And the reason being is first of all, I want everybody to Google the
[01:29:50] of all, I want everybody to Google the Prompt Payment Act. So, the Prompt
[01:29:52] Prompt Payment Act. So, the Prompt Payment Act we talked about earlier.
[01:29:53] Payment Act we talked about earlier. Prompt Payment Act states that as a
[01:29:55] Prompt Payment Act states that as a small business, you must be paid within
[01:29:56] small business, you must be paid within 15 days of a certified invoice.
[01:29:59] 15 days of a certified invoice. So, the minute you submit an invoice to
[01:30:00] So, the minute you submit an invoice to the government and it is approved, they
[01:30:02] the government and it is approved, they have 15 days to pay you. If they do not
[01:30:04] have 15 days to pay you. If they do not pay you, you then are allowed to bill
[01:30:06] pay you, you then are allowed to bill the government interest.
[01:30:08] the government interest. The interest that they'll give you right
[01:30:09] The interest that they'll give you right now, I don't know, you might just put in
[01:30:11] now, I don't know, you might just put in a
[01:30:12] a Prompt Payment Act current interest
[01:30:14] Prompt Payment Act current interest rate.
[01:30:15] rate. Just Google that real quick. And you're
[01:30:17] Just Google that real quick. And you're going to be blown away by this. Okay.
[01:30:18] going to be blown away by this. Okay. >> But when he tells you the number, I'm
[01:30:19] >> But when he tells you the number, I'm going to tell you the Prompt Payment
[01:30:21] going to tell you the Prompt Payment Interest Act is
[01:30:22] Interest Act is current interest rate is actually more
[01:30:24] current interest rate is actually more than the bank will pay you.
[01:30:25] than the bank will pay you. You want the government to not pay you
[01:30:27] You want the government to not pay you on time. You make money
[01:30:29] on time. You make money on the interest.
[01:30:30] on the interest. >> on the interest that they have to pay
[01:30:32] >> on the interest that they have to pay you every day that they're late.
[01:30:34] you every day that they're late. What's the current rate? 4.625.
[01:30:37] What's the current rate? 4.625. Now now put in current high yield
[01:30:39] Now now put in current high yield savings account interest rate. I got a
[01:30:41] savings account interest rate. I got a MX high yield savings. I get 3.3%. Yeah.
[01:30:43] MX high yield savings. I get 3.3%. Yeah. The government will pay us 4.26 because
[01:30:46] The government will pay us 4.26 because they didn't pay us on time. What's more
[01:30:47] they didn't pay us on time. What's more What's better? The government don't pay
[01:30:49] What's better? The government don't pay me. Don't pay me.
[01:30:50] me. Don't pay me. >> [laughter]
[01:30:53] >> So, that's why I wanted to start with
[01:30:54] >> So, that's why I wanted to start with payment, right? Okay. Payment's not a
[01:30:56] payment, right? Okay. Payment's not a problem. Yeah.
[01:30:58] problem. Yeah. The payment issue is a myth. And people
[01:31:01] The payment issue is a myth. And people It's Oh, yeah, something like 3.5.
[01:31:02] It's Oh, yeah, something like 3.5. Right. So, the best money you're going
[01:31:04] Right. So, the best money you're going to get right now today is by the
[01:31:06] to get right now today is by the government paying you late. And they're
[01:31:08] government paying you late. And they're not going to pay you late because of
[01:31:09] not going to pay you late because of that. Because they don't want to pay
[01:31:11] that. Because they don't want to pay you. They don't want to pay you that
[01:31:12] you. They don't want to pay you that extra bread.
[01:31:13] extra bread. >> Right. But once again, people don't know
[01:31:14] >> Right. But once again, people don't know that that exists.
[01:31:16] that that exists. Majority of people out here don't know
[01:31:17] Majority of people out here don't know that the Prompt Payment Act exists and
[01:31:18] that the Prompt Payment Act exists and they don't know how to bill the
[01:31:19] they don't know how to bill the government on interest that they don't
[01:31:20] government on interest that they don't get paid on time. So, that handles the
[01:31:22] get paid on time. So, that handles the payment issue. Aside from that, there's
[01:31:24] payment issue. Aside from that, there's also
[01:31:26] also a lot of businesses out there now
[01:31:27] a lot of businesses out there now because this has become a big business.
[01:31:29] because this has become a big business. So, in trucking, you know how you guys
[01:31:30] So, in trucking, you know how you guys have factoring? Yeah. So, now we have
[01:31:32] have factoring? Yeah. So, now we have factoring on government contracts. Why
[01:31:34] factoring on government contracts. Why will people factor government contracts?
[01:31:35] will people factor government contracts? Look at the risk. He just told us that
[01:31:38] Look at the risk. He just told us that 4.26% is what the government's going to
[01:31:40] 4.26% is what the government's going to pay us and 3.5 is what we'll get on high
[01:31:42] pay us and 3.5 is what we'll get on high yield interest.
[01:31:43] yield interest. So, why wouldn't a factoring company
[01:31:44] So, why wouldn't a factoring company want to buy my invoice and pray that the
[01:31:47] want to buy my invoice and pray that the government pays them late? 100%. Cuz now
[01:31:49] government pays them late? 100%. Cuz now they're getting paid from me and they're
[01:31:51] they're getting paid from me and they're going to charge the government that
[01:31:52] going to charge the government that money. Yeah. Yeah.
[01:31:54] money. Yeah. Yeah. >> So, So, you don't need money technically
[01:31:56] >> So, So, you don't need money technically anymore to do government contracting
[01:31:57] anymore to do government contracting because you can utilize alternative
[01:31:59] because you can utilize alternative payment. And so, factoring is a form of
[01:32:01] payment. And so, factoring is a form of that. I don't
[01:32:03] that. I don't I don't advise it unless you understand
[01:32:05] I don't advise it unless you understand it because it is just like in trucking,
[01:32:07] it because it is just like in trucking, it's high cost money, right? You know
[01:32:09] it's high cost money, right? You know what I'm saying? It's going to cost you
[01:32:10] what I'm saying? It's going to cost you money to to factor.
[01:32:12] money to to factor. So, that handles payment. So, before we
[01:32:14] So, that handles payment. So, before we move on, what about terms like net
[01:32:16] move on, what about terms like net 30
[01:32:17] 30 >> 15. Net 15.
[01:32:18] >> 15. Net 15. >> told you it's 15. Prompt Payment Act 15.
[01:32:20] >> told you it's 15. Prompt Payment Act 15. 15, got it. I missed that. All right,
[01:32:21] 15, got it. I missed that. All right, cool.
[01:32:21] cool. >> Yeah, Prompt Payment Act net 15. If the
[01:32:23] >> Yeah, Prompt Payment Act net 15. If the government don't pay you in 15, they owe
[01:32:25] government don't pay you in 15, they owe you 4.26%.
[01:32:26] you 4.26%. >> [laughter]
[01:32:26] >> [laughter] >> And that's what it says, right? Check me
[01:32:27] >> And that's what it says, right? Check me if I'm lying.
[01:32:29] if I'm lying. No, cuz you know like I said, I'm
[01:32:31] No, cuz you know like I said, I'm I hit them with the facts. Like I'mma
[01:32:32] I hit them with the facts. Like I'mma hit them with the [laughter] facts.
[01:32:33] hit them with the [laughter] facts. >> Facts. It's all the facts only. This is
[01:32:35] >> Facts. It's all the facts only. This is not feelings. These are only facts, my
[01:32:37] not feelings. These are only facts, my boy. No doubt. No doubt. Prompt Payment
[01:32:38] boy. No doubt. No doubt. Prompt Payment Act says 15 days. After 15 days, 4.26%.
[01:32:41] Act says 15 days. After 15 days, 4.26%. >> Got it. And that's on all contracts
[01:32:43] >> Got it. And that's on all contracts across the board, federal, state
[01:32:45] across the board, federal, state Federal. Federal. Federal. As a small
[01:32:47] Federal. Federal. Federal. As a small business. Got it. Okay? You have to be a
[01:32:49] business. Got it. Okay? You have to be a registered small business, which is why
[01:32:50] registered small business, which is why you have to be in that list of those. If
[01:32:52] you have to be in that list of those. If you're not,
[01:32:54] you're not, it's you're not going to be able to
[01:32:56] it's you're not going to be able to utilize that. Got it.
[01:32:57] utilize that. Got it. >> Okay?
[01:32:58] >> Okay? Outside from that,
[01:33:00] Outside from that, the beautiful thing about government
[01:33:01] the beautiful thing about government contracting is on each contract, you are
[01:33:04] contracting is on each contract, you are actually able to negotiate your terms.
[01:33:07] actually able to negotiate your terms. So, on the first page of SF90 or 1442,
[01:33:10] So, on the first page of SF90 or 1442, which is the form that you submit with
[01:33:11] which is the form that you submit with your proposal,
[01:33:12] your proposal, you're able to put if you want to offer
[01:33:14] you're able to put if you want to offer the government a discount for quicker
[01:33:16] the government a discount for quicker payment.
[01:33:17] payment. So, typically what I teach my students,
[01:33:19] So, typically what I teach my students, what we do, is we do like a two and 10.
[01:33:22] what we do, is we do like a two and 10. So, we'll give the government a 2%
[01:33:23] So, we'll give the government a 2% discount if they pay within 10 days.
[01:33:26] discount if they pay within 10 days. And so, you submit that when you submit
[01:33:28] And so, you submit that when you submit your proposal with your price, you put
[01:33:30] your proposal with your price, you put your discount terms also. So, in
[01:33:32] your discount terms also. So, in government contracting, you dictate how
[01:33:34] government contracting, you dictate how you want to get paid.
[01:33:35] you want to get paid. Where people mess up is they don't know
[01:33:37] Where people mess up is they don't know how to do that.
[01:33:39] how to do that. So then, they don't know how to properly
[01:33:41] So then, they don't know how to properly submit. So, they don't negotiate
[01:33:43] submit. So, they don't negotiate properly their terms.
[01:33:45] properly their terms. So, your terms are what you dictate. But
[01:33:48] So, your terms are what you dictate. But Prompt Payment Act says 15 days. Got it.
[01:33:50] Prompt Payment Act says 15 days. Got it. Got it. Okay, so now we're going back to
[01:33:51] Got it. Okay, so now we're going back to pricing now. Now, here price is where it
[01:33:53] pricing now. Now, here price is where it gets good.
[01:33:54] gets good. Like I said, before I give you the play,
[01:33:56] Like I said, before I give you the play, I'mma tell you everybody. I talked to
[01:33:58] I'mma tell you everybody. I talked to you about three sites. sam.gov,
[01:34:00] you about three sites. sam.gov, usaspending.gov, acquisition.gov. SAM is
[01:34:03] usaspending.gov, acquisition.gov. SAM is the present. Acquisition is the future.
[01:34:06] the present. Acquisition is the future. USASpending is the past.
[01:34:08] USASpending is the past. To do pricing, what you're going to do
[01:34:09] To do pricing, what you're going to do is you're going to find a solicitation
[01:34:12] is you're going to find a solicitation and then you're going to go on
[01:34:13] and then you're going to go on usaspending.gov
[01:34:15] usaspending.gov and you're going to put that
[01:34:15] and you're going to put that solicitation into USASpending. And then
[01:34:17] solicitation into USASpending. And then you're going to find if the government
[01:34:19] you're going to find if the government has done anything like that prior.
[01:34:21] has done anything like that prior. Nine times out of 10, they have. There's
[01:34:23] Nine times out of 10, they have. There's very very very few things that are being
[01:34:26] very very very few things that are being contracted today for the first time
[01:34:28] contracted today for the first time ever.
[01:34:29] ever. If some If the government's buying
[01:34:30] If some If the government's buying something from you today, they bought it
[01:34:32] something from you today, they bought it before.
[01:34:34] before. Find how much they paid before.
[01:34:36] Find how much they paid before. Right? Because you can do that cuz it's
[01:34:38] Right? Because you can do that cuz it's public knowledge.
[01:34:39] public knowledge. And then you can look at it and you can
[01:34:41] And then you can look at it and you can add inflation and you can add the
[01:34:43] add inflation and you can add the different factors that could cause it to
[01:34:44] different factors that could cause it to go up
[01:34:45] go up and that's how you price.
[01:34:46] and that's how you price. When you're pricing things that are
[01:34:47] When you're pricing things that are material and labor, even easier. Your
[01:34:50] material and labor, even easier. Your material is going to be your material.
[01:34:52] material is going to be your material. And your labor, because we're doing
[01:34:54] And your labor, because we're doing government contracting, it's set by your
[01:34:56] government contracting, it's set by your wage determinations.
[01:34:58] wage determinations. So, for every
[01:35:00] So, for every location,
[01:35:01] location, the government puts out what they call a
[01:35:02] the government puts out what they call a wage determination. So, here we're in
[01:35:04] wage determination. So, here we're in Philadelphia, we can go up now and we'll
[01:35:06] Philadelphia, we can go up now and we'll pull up Philadelphia and it'll tell us
[01:35:08] pull up Philadelphia and it'll tell us for every labor category, what's the
[01:35:10] for every labor category, what's the minimum that we have to pay somebody to
[01:35:12] minimum that we have to pay somebody to work on a government job.
[01:35:14] work on a government job. You take that number, you multiply it by
[01:35:16] You take that number, you multiply it by the amount of hours.
[01:35:17] the amount of hours. You add your labor and then you add your
[01:35:20] You add your labor and then you add your overhead and profit. That's how you
[01:35:22] overhead and profit. That's how you price. Mhm. It's
[01:35:24] price. Mhm. It's Pricing a government contract is super
[01:35:26] Pricing a government contract is super easy when you understand. The problem is
[01:35:27] easy when you understand. The problem is people don't understand. And they try to
[01:35:29] people don't understand. And they try to price the government like they price
[01:35:31] price the government like they price everybody else. You can't do that. You
[01:35:32] everybody else. You can't do that. You got to price the government how the
[01:35:33] got to price the government how the government pays.
[01:35:35] government pays. And that's why using usaspending.gov
[01:35:38] And that's why using usaspending.gov fpds.gov and searching prior contracts,
[01:35:41] fpds.gov and searching prior contracts, that's where that helps you because we
[01:35:42] that's where that helps you because we can build our price model using wage
[01:35:44] can build our price model using wage determinations and things like that.
[01:35:47] determinations and things like that. Like for example,
[01:35:48] Like for example, janitorial work.
[01:35:51] janitorial work. Somebody might say, "Okay, I got a
[01:35:52] Somebody might say, "Okay, I got a janitorial company. I pay my people $16
[01:35:56] janitorial company. I pay my people $16 an hour, right? So, now I'm going to
[01:35:58] an hour, right? So, now I'm going to price it at $16 plus my 20%. So, I'm
[01:36:01] price it at $16 plus my 20%. So, I'm going to price it at 1720, whatever it
[01:36:03] going to price it at 1720, whatever it is, right? At my 20% on 16, so it's 1720
[01:36:06] is, right? At my 20% on 16, so it's 1720 is what I what I charge."
[01:36:08] is what I what I charge." But the wage determination rate is $35.
[01:36:11] But the wage determination rate is $35. So, now you going to you you price 1720,
[01:36:14] So, now you going to you you price 1720, you're going to lose because you seem
[01:36:15] you're going to lose because you seem unrealistic to the government. Why are
[01:36:17] unrealistic to the government. Why are you telling us it's 1720 for a janitor
[01:36:19] you telling us it's 1720 for a janitor when the wage determination is $35?
[01:36:22] when the wage determination is $35? It's impossible. You have to pay $35.
[01:36:24] It's impossible. You have to pay $35. Right. Problem is people don't know how
[01:36:25] Right. Problem is people don't know how to look for that.
[01:36:27] to look for that. So, once you understand where the
[01:36:28] So, once you understand where the resources are, you you literally just
[01:36:30] resources are, you you literally just use your resources to price. Now, you
[01:36:32] use your resources to price. Now, you ready for the play? I'm ready. I was
[01:36:33] ready for the play? I'm ready. I was waiting. I was like, "I hope you didn't
[01:36:34] waiting. I was like, "I hope you didn't forget the play." Cuz that's all
[01:36:36] forget the play." Cuz that's all Everything you [snorts] Everything else
[01:36:37] Everything you [snorts] Everything else you said, I was like, "Where Where
[01:36:39] you said, I was like, "Where Where Where is my play at?" Talk to me. All
[01:36:41] Where is my play at?" Talk to me. All right, here's your play.
[01:36:42] right, here's your play. Here's your play.
[01:36:44] Here's your play. There's a lot of different ways in the
[01:36:45] There's a lot of different ways in the transportation space for people to get
[01:36:47] transportation space for people to get paid in government contracting. One of
[01:36:48] paid in government contracting. One of the biggest ways is through
[01:36:50] the biggest ways is through transport.
[01:36:52] transport. Transport is amazing. It's a big field.
[01:36:55] Transport is amazing. It's a big field. Currently right now, the Philadelphia VA
[01:36:58] Currently right now, the Philadelphia VA hospital has their transportation
[01:36:59] hospital has their transportation contract in pre-solicitation, which
[01:37:01] contract in pre-solicitation, which means in the next 30 days it will come
[01:37:02] means in the next 30 days it will come out for bid. That's a four-year contract
[01:37:04] out for bid. That's a four-year contract to do non-emergency medical
[01:37:06] to do non-emergency medical transportation. So, essentially sprinter
[01:37:07] transportation. So, essentially sprinter vans. And you take patients from their
[01:37:09] vans. And you take patients from their home to the VA back and forth. So, they
[01:37:12] home to the VA back and forth. So, they have a non-emergency medical, they have
[01:37:13] have a non-emergency medical, they have a non-emergency medical wheelchair, and
[01:37:15] a non-emergency medical wheelchair, and then they have your normal ambulatory.
[01:37:17] then they have your normal ambulatory. Right? So, right now the non-emergency
[01:37:19] Right? So, right now the non-emergency medical non non-wheelchair is about to
[01:37:21] medical non non-wheelchair is about to be out for bid.
[01:37:22] be out for bid. So, I did research and I found that the
[01:37:24] So, I did research and I found that the previous time this contract was
[01:37:25] previous time this contract was released, it went for
[01:37:27] released, it went for about $2.4 million a year. Okay?
[01:37:31] about $2.4 million a year. Okay? Well, the great thing about it also is I
[01:37:32] Well, the great thing about it also is I went on usaspending.gov and I was able
[01:37:34] went on usaspending.gov and I was able to see each subsequent year of that
[01:37:37] to see each subsequent year of that four-year contract. And I did the math
[01:37:39] four-year contract. And I did the math and realized that every year the current
[01:37:41] and realized that every year the current contractor was increasing their price by
[01:37:43] contractor was increasing their price by 18%. So, it's first 2.4 in their base
[01:37:46] 18%. So, it's first 2.4 in their base year. 2.4 plus 18 for the next year.
[01:37:49] year. 2.4 plus 18 for the next year. Plus another 18 for the third year. And
[01:37:51] Plus another 18 for the third year. And the 18 for the final year. So, now when
[01:37:53] the 18 for the final year. So, now when it comes back out, what's the price
[01:37:55] it comes back out, what's the price going to be?
[01:37:56] going to be? 18% more.
[01:37:57] 18% more. I don't do public math on the podcast,
[01:37:59] I don't do public math on the podcast, but yeah. You feel me?
[01:38:01] but yeah. You feel me? >> [laughter]
[01:38:02] >> [laughter] >> So, it's simple, right?
[01:38:03] >> So, it's simple, right? >> Yeah. Yeah. Yeah. So, now I just told
[01:38:06] >> Yeah. Yeah. Yeah. So, now I just told you what to price it. Right. You're
[01:38:07] you what to price it. Right. You're going to go on usaspending.gov. You're
[01:38:08] going to go on usaspending.gov. You're going to I can literally show it to you.
[01:38:10] going to I can literally show it to you. I got to save it on my phone. You know
[01:38:11] I got to save it on my phone. You know the price that they just paid. You're
[01:38:12] the price that they just paid. You're going to add 18% to that. That's what
[01:38:14] going to add 18% to that. That's what the current person's probably going to
[01:38:16] the current person's probably going to bid
[01:38:17] bid if not more.
[01:38:18] if not more. Right? Because you also have to look at
[01:38:20] Right? Because you also have to look at things like
[01:38:22] things like um
[01:38:24] um how much has the rate determination
[01:38:26] how much has the rate determination changed for a driver between when it was
[01:38:28] changed for a driver between when it was originally bid till now? Did it go up 22
[01:38:31] originally bid till now? Did it go up 22 as opposed to 18 per year? Like how much
[01:38:33] as opposed to 18 per year? Like how much did it change? Right. And then you're
[01:38:34] did it change? Right. And then you're going to cross-reference that. And then
[01:38:35] going to cross-reference that. And then you're going to make the determination
[01:38:36] you're going to make the determination and say, "Okay, we know that he
[01:38:39] and say, "Okay, we know that he probably is going to be no lower than
[01:38:41] probably is going to be no lower than that last year plus 18. So, we know that
[01:38:44] that last year plus 18. So, we know that his price per year is probably going to
[01:38:45] his price per year is probably going to be 2.9.
[01:38:47] be 2.9. 2.9 or or it's probably I think I did
[01:38:50] 2.9 or or it's probably I think I did the math, it's like 3.1. So, we know his
[01:38:52] the math, it's like 3.1. So, we know his base price is probably going to be 3.1.
[01:38:54] base price is probably going to be 3.1. So, now we're going to work backwards
[01:38:56] So, now we're going to work backwards into 3.1 and say, "Okay, this is the
[01:38:58] into 3.1 and say, "Okay, this is the amount of hours that we have to do. This
[01:39:00] amount of hours that we have to do. This is the equipment. Can we do it for less
[01:39:02] is the equipment. Can we do it for less than 3.1 or at 3.1?"
[01:39:04] than 3.1 or at 3.1?" And then we submit the bid at 3.1 and we
[01:39:05] And then we submit the bid at 3.1 and we win. It's just math.
[01:39:07] win. It's just math. Mhm. And now the next question that
[01:39:09] Mhm. And now the next question that people are going to ask is then, "How do
[01:39:10] people are going to ask is then, "How do I do the work?
[01:39:12] I do the work? I don't got no Sprinter vans. It's even
[01:39:13] I don't got no Sprinter vans. It's even easier.
[01:39:15] easier. A government contract, I wish I had my I
[01:39:17] A government contract, I wish I had my I don't have my wallet on me with my
[01:39:18] don't have my wallet on me with my bread, but people don't know You got a
[01:39:20] bread, but people don't know You got a dollar in your pocket?
[01:39:22] dollar in your pocket? Just any piece of money. I'm going to
[01:39:23] Just any piece of money. I'm going to show you something just real quick. This
[01:39:24] show you something just real quick. This is cool. I love to do this trick. Let me
[01:39:26] is cool. I love to do this trick. Let me see Let me see it real quick. Bring that
[01:39:27] see Let me see it real quick. Bring that dollar. Watch him.
[01:39:29] dollar. Watch him. Set this up.
[01:39:31] Set this up. So, a lot of people have never actually
[01:39:33] So, a lot of people have never actually read
[01:39:34] read a government note.
[01:39:36] a government note. Have you ever read that paragraph right
[01:39:37] Have you ever read that paragraph right there?
[01:39:38] there? Uh this note
[01:39:40] Uh this note >> Good. Raise it up to the camera so the
[01:39:41] >> Good. Raise it up to the camera so the camera can see it. Read it aloud. What
[01:39:42] camera can see it. Read it aloud. What does it say? It says, "This note This
[01:39:44] does it say? It says, "This note This note is legal tender for all debts,
[01:39:46] note is legal tender for all debts, public and private." Have you ever read
[01:39:48] public and private." Have you ever read that before? No, sir.
[01:39:50] that before? No, sir. >> [laughter]
[01:39:51] >> [laughter] >> No, sir. So, nobody's ever actually read
[01:39:54] >> No, sir. So, nobody's ever actually read what it says on a dollar. Or And it says
[01:39:56] what it says on a dollar. Or And it says it on every note. Every every US note
[01:39:59] it on every note. Every every US note says that. So, this dollar isn't worth a
[01:40:01] says that. So, this dollar isn't worth a dollar.
[01:40:02] dollar. This is a note. This note is legal
[01:40:04] This is a note. This note is legal tender for all debts, public and
[01:40:06] tender for all debts, public and private. That's what currency is.
[01:40:09] private. That's what currency is. That's also the writing that's on a
[01:40:10] That's also the writing that's on a government contract.
[01:40:12] government contract. So, the same way you could take this
[01:40:14] So, the same way you could take this dollar and you can take it to the corner
[01:40:15] dollar and you can take it to the corner store and we can buy a pack of Now
[01:40:17] store and we can buy a pack of Now Laters with this dollar.
[01:40:18] Laters with this dollar. You can take a government contract,
[01:40:19] You can take a government contract, which has the exact same writing that's
[01:40:21] which has the exact same writing that's on this dollar, to any bank that
[01:40:23] on this dollar, to any bank that understands
[01:40:25] understands public and private debt, because that's
[01:40:27] public and private debt, because that's what this note is. And you can leverage
[01:40:29] what this note is. And you can leverage that debt for that note to actual
[01:40:32] that debt for that note to actual currency.
[01:40:33] currency. That's what people don't understand
[01:40:35] That's what people don't understand about government contracting. Is they
[01:40:36] about government contracting. Is they don't understand how to leverage the
[01:40:39] don't understand how to leverage the note for the debt.
[01:40:41] note for the debt. And that's what we do, and that's how we
[01:40:42] And that's what we do, and that's how we get money for government contracts.
[01:40:43] get money for government contracts. There's There's banks out there now that
[01:40:46] There's There's banks out there now that specialize in financing government
[01:40:48] specialize in financing government contracts, because they understand it.
[01:40:50] contracts, because they understand it. Will credit come into play? Nope.
[01:40:52] Will credit come into play? Nope. Cuz it's not based on you. It's based on
[01:40:53] Cuz it's not based on you. It's based on the contract.
[01:40:54] the contract. >> Because think about it.
[01:40:56] >> Because think about it. Keeping your dollar, bud.
[01:40:57] Keeping your dollar, bud. >> [laughter]
[01:40:58] >> [laughter] >> Think about it. On that dollar, does
[01:41:00] >> Think about it. On that dollar, does credit come into play with that dollar?
[01:41:02] credit come into play with that dollar? >> No, sir. Because what has the value?
[01:41:04] >> No, sir. Because what has the value? The The dollar.
[01:41:06] The The dollar. >> Same thing with government contracts.
[01:41:08] >> Same thing with government contracts. Hmm.
[01:41:10] Hmm. Hmm. Okay. So, are there special banks
[01:41:12] Hmm. Okay. So, are there special banks that
[01:41:12] that >> Special banks. There's special banks out
[01:41:14] >> Special banks. There's special banks out there that only deal in this.
[01:41:16] there that only deal in this. >> [snorts]
[01:41:17] >> [snorts] >> Can you name some? Is
[01:41:19] >> Can you name some? Is >> [laughter]
[01:41:23] >> Okay, Kurt, let's go to commercial.
[01:41:25] >> Okay, Kurt, let's go to commercial. Commercial break.
[01:41:26] Commercial break. >> [laughter]
[01:41:27] >> [laughter] >> But there's a lot of There are a lot of
[01:41:29] >> But there's a lot of There are a lot of financial institutions. There's actual
[01:41:31] financial institutions. There's actual And and And people, please, once again,
[01:41:33] And and And people, please, once again, Snapple facts, research, check it.
[01:41:35] Snapple facts, research, check it. Most of your large commercial banks
[01:41:37] Most of your large commercial banks actually have government um branches
[01:41:39] actually have government um branches within.
[01:41:40] within. So, a lot of your typical banks, your
[01:41:43] So, a lot of your typical banks, your Chases, your Wells Fargos, uh your Bank
[01:41:45] Chases, your Wells Fargos, uh your Bank of Americas, you can actually go to
[01:41:46] of Americas, you can actually go to them, but you can't do business with the
[01:41:49] them, but you can't do business with the branch.
[01:41:51] branch. I don't know I'm I'm sure people have
[01:41:52] I don't know I'm I'm sure people have researched, but you know that there's
[01:41:53] researched, but you know that there's there's public branches and there's
[01:41:54] there's public branches and there's private branches. Like Chase has private
[01:41:56] private branches. Like Chase has private client.
[01:41:57] client. Yeah. So, Chase private client is
[01:41:59] Yeah. So, Chase private client is completely different than Chase regular.
[01:42:01] completely different than Chase regular. There's a level above private client
[01:42:03] There's a level above private client that that is completely different than
[01:42:05] that that is completely different than private client. And then there's a level
[01:42:06] private client. And then there's a level past that, which is your government. So,
[01:42:09] past that, which is your government. So, you actually have to research the
[01:42:10] you actually have to research the government uh the government office of
[01:42:13] government uh the government office of those banks. But most of your commercial
[01:42:15] those banks. But most of your commercial banks have a government arm, and that's
[01:42:18] banks have a government arm, and that's all they do is handle government
[01:42:19] all they do is handle government contracts. Right now, um I think Wells
[01:42:21] contracts. Right now, um I think Wells Fargo's government arm is is the biggest
[01:42:24] Fargo's government arm is is the biggest of the those banks. Wells Fargo's the
[01:42:26] of the those banks. Wells Fargo's the one that Yeah, they're doing the most
[01:42:27] one that Yeah, they're doing the most with it. Um but like I said, it's it's
[01:42:29] with it. Um but like I said, it's it's not Wells Fargo. So, if you walk into
[01:42:31] not Wells Fargo. So, if you walk into your Wells Fargo and say, "Hey, I'm a
[01:42:32] your Wells Fargo and say, "Hey, I'm a government contractor." They're going to
[01:42:33] government contractor." They're going to be like, "Okay, cool." You literally
[01:42:35] be like, "Okay, cool." You literally have to go online and pull up the actual
[01:42:38] have to go online and pull up the actual Wells Fargo government contracting
[01:42:40] Wells Fargo government contracting sector bank, and then communicate with
[01:42:43] sector bank, and then communicate with them. And then there's a full list of I
[01:42:45] them. And then there's a full list of I mean
[01:42:46] mean Man, you can make so much money You get
[01:42:47] Man, you can make so much money You get into like um
[01:42:49] into like um Not to get too deep in finance, but
[01:42:50] Not to get too deep in finance, but since we're talking finance
[01:42:52] since we're talking finance SBA loans. We're all familiar with SBA
[01:42:54] SBA loans. We're all familiar with SBA 7A and 504 loans for SBA financing. Do
[01:42:57] 7A and 504 loans for SBA financing. Do you know that the SBA has something
[01:42:58] you know that the SBA has something called a cap line and cap loan?
[01:43:00] called a cap line and cap loan? No. Once again, you can Google this
[01:43:02] No. Once again, you can Google this while you sit there. So, just look up
[01:43:03] while you sit there. So, just look up SBA cap line, cap loan. So, an SBA cap
[01:43:06] SBA cap line, cap loan. So, an SBA cap line or a cap loan is a financing
[01:43:08] line or a cap loan is a financing product that the SBA offers strictly to
[01:43:10] product that the SBA offers strictly to government contractors. So, a cap loan
[01:43:12] government contractors. So, a cap loan is a product that they offer you that is
[01:43:14] is a product that they offer you that is a loan for a single contract. So, once
[01:43:16] a loan for a single contract. So, once again, you're taking that contract,
[01:43:17] again, you're taking that contract, which is that legal tender, and then
[01:43:19] which is that legal tender, and then you're turning that over to the SBA, and
[01:43:21] you're turning that over to the SBA, and they're giving you a loan based on that
[01:43:22] they're giving you a loan based on that contract to perform that contract.
[01:43:25] contract to perform that contract. A cap line is a line of credit that the
[01:43:27] A cap line is a line of credit that the SBA gives us as government contractors
[01:43:29] SBA gives us as government contractors to operate government contracts. You can
[01:43:32] to operate government contracts. You can only use the funds on that cap line for
[01:43:34] only use the funds on that cap line for government contracting.
[01:43:36] government contracting. You can't use it for
[01:43:37] You can't use it for public debt. You can only I mean,
[01:43:39] public debt. You can only I mean, private debt. You can only use a cap
[01:43:41] private debt. You can only use a cap line for public back debt.
[01:43:44] line for public back debt. So, there's a number of different ways
[01:43:45] So, there's a number of different ways to finance government contracts. The
[01:43:46] to finance government contracts. The problem is people don't know cuz they
[01:43:47] problem is people don't know cuz they don't know. Like they don't know
[01:43:49] don't know. Like they don't know Like people don't know that the the cap
[01:43:51] Like people don't know that the the cap lines and cap loans exist. You found it,
[01:43:53] lines and cap loans exist. You found it, right? It's a real thing, right? It's a
[01:43:54] right? It's a real thing, right? It's a It actually exists. I just Facts like
[01:43:57] It actually exists. I just Facts like facts, not feelings.
[01:43:58] facts, not feelings. >> [laughter]
[01:44:00] >> [laughter] >> Say What did it say now?
[01:44:01] >> Say What did it say now? What? It says, "SBA guaranteed line of
[01:44:03] What? It says, "SBA guaranteed line of credit helping businesses with the cap
[01:44:04] credit helping businesses with the cap line helping small businesses with
[01:44:06] line helping small businesses with short-term or
[01:44:07] short-term or cyclical working capital
[01:44:09] cyclical working capital And strictly for government contractors.
[01:44:11] And strictly for government contractors. Cap lines and cap loans are just so
[01:44:14] Cap lines and cap loans are just so There are a lot of different ways to
[01:44:16] There are a lot of different ways to finance government contracts that people
[01:44:17] finance government contracts that people don't People don't know about. I mean,
[01:44:19] don't People don't know about. I mean, we use one
[01:44:21] we use one I have a partnership partnership with
[01:44:22] I have a partnership partnership with Nonstop Consulting for the trucking
[01:44:24] Nonstop Consulting for the trucking stuff, right? And so, like we're able to
[01:44:26] stuff, right? And so, like we're able to help people in the trucking industry
[01:44:27] help people in the trucking industry with uh rentals.
[01:44:30] with uh rentals. So, say you get a Say you get a that
[01:44:31] So, say you get a Say you get a that that non-ambulatory, but you don't have
[01:44:33] that non-ambulatory, but you don't have any Sprinters. I can take you to my
[01:44:35] any Sprinters. I can take you to my connection, we can get you Sprinter vans
[01:44:37] connection, we can get you Sprinter vans on a rental basis based on you having
[01:44:39] on a rental basis based on you having that contract, and you're paying rental
[01:44:40] that contract, and you're paying rental fees on those Sprinters. You can You can
[01:44:42] fees on those Sprinters. You can You can literally staff up that entire
[01:44:44] literally staff up that entire non-ambulatory contract with no money.
[01:44:46] non-ambulatory contract with no money. It's going to cost you a little bit
[01:44:47] It's going to cost you a little bit naturally, your insurances, your You
[01:44:49] naturally, your insurances, your You know what I'm saying? Your vehicle
[01:44:50] know what I'm saying? Your vehicle lease, things like that. But then
[01:44:52] lease, things like that. But then I could put together a whole play for
[01:44:53] I could put together a whole play for somebody and literally do it with very,
[01:44:54] somebody and literally do it with very, very little money. Now, this is what I
[01:44:56] very little money. Now, this is what I tell people. When you get into
[01:44:58] tell people. When you get into government contracting
[01:45:00] government contracting it takes time, money, or a combination
[01:45:02] it takes time, money, or a combination of both.
[01:45:04] of both. If you come to me and say, "Listen, bro,
[01:45:05] If you come to me and say, "Listen, bro, I got
[01:45:07] I got all the time in the world. I can devote
[01:45:08] all the time in the world. I can devote 80 hours a week to becoming a government
[01:45:10] 80 hours a week to becoming a government contractor, but I ain't got no money."
[01:45:11] contractor, but I ain't got no money." Cool. I can show you how to do it. It's
[01:45:12] Cool. I can show you how to do it. It's just going to take you a little bit
[01:45:12] just going to take you a little bit longer.
[01:45:14] longer. You come to me and say, "I don't have no
[01:45:15] You come to me and say, "I don't have no time. Here's a bag, go do it for me."
[01:45:17] time. Here's a bag, go do it for me." Cool. I'll do it for you. It's going to
[01:45:18] Cool. I'll do it for you. It's going to cost you a lot of money.
[01:45:20] cost you a lot of money. The ideal government contractor is
[01:45:21] The ideal government contractor is somebody who can put a little bit of
[01:45:22] somebody who can put a little bit of time and a little bit of money. But you
[01:45:24] time and a little bit of money. But you don't necessarily need that. You can do
[01:45:26] don't necessarily need that. You can do it with either way.
[01:45:27] it with either way. If you come to the game and you don't
[01:45:28] If you come to the game and you don't have the money, but you have the time, I
[01:45:30] have the money, but you have the time, I can show you how to do it with just
[01:45:31] can show you how to do it with just time. But you have to be realistic and
[01:45:33] time. But you have to be realistic and understand it's going to take you a
[01:45:34] understand it's going to take you a little bit longer. When you go on the
[01:45:35] little bit longer. When you go on the SBA's website right now, the SBA says it
[01:45:38] SBA's website right now, the SBA says it takes the average government contractor
[01:45:40] takes the average government contractor between 80 and $130,000 in 24 months to
[01:45:43] between 80 and $130,000 in 24 months to get a return on that investment.
[01:45:46] get a return on that investment. That's what the government's telling
[01:45:47] That's what the government's telling you.
[01:45:48] you. So, you can't come to me and say I want
[01:45:49] So, you can't come to me and say I want to become a government contractor and
[01:45:50] to become a government contractor and get rich in 6 months.
[01:45:52] get rich in 6 months. If you go on the SBA, they're going to
[01:45:53] If you go on the SBA, they're going to tell you it's going to take you 2 years
[01:45:54] tell you it's going to take you 2 years and it's going to cost you 100 grand.
[01:45:56] and it's going to cost you 100 grand. So, if you can't wrap your head around
[01:45:58] So, if you can't wrap your head around that concept, it's just not going to
[01:45:59] that concept, it's just not going to work for you. Hmm.
[01:46:00] work for you. Hmm. >> [clears throat]
[01:46:00] >> [clears throat] >> Hmm. It's just
[01:46:02] >> Hmm. It's just >> [laughter]
[01:46:02] >> [laughter] >> Yeah. Makes sense to me.
[01:46:04] >> Yeah. Makes sense to me. >> It's like it's just is is just like
[01:46:05] >> It's like it's just is is just like that. Difference between a winning
[01:46:07] that. Difference between a winning proposal and a losing proposal. Uh
[01:46:09] proposal and a losing proposal. Uh that's subjective. And the reason I say
[01:46:11] that's subjective. And the reason I say it's subjective is it's going to be
[01:46:12] it's subjective is it's going to be based on uh it's going to be based on
[01:46:14] based on uh it's going to be based on your agency. It's going to be based on
[01:46:15] your agency. It's going to be based on the proposal. So, one of the main things
[01:46:17] the proposal. So, one of the main things people need to understand about
[01:46:18] people need to understand about government contracting is is not a In
[01:46:21] government contracting is is not a In most instances, it is not lowest price.
[01:46:23] most instances, it is not lowest price. The government does awards based on best
[01:46:25] The government does awards based on best value.
[01:46:26] value. So, the government awards based on what
[01:46:27] So, the government awards based on what they deem to be the best value for the
[01:46:29] they deem to be the best value for the government, which is not always price.
[01:46:31] government, which is not always price. So, the reason I say it's subjective is
[01:46:33] So, the reason I say it's subjective is it's going to be based on the proposal.
[01:46:34] it's going to be based on the proposal. But
[01:46:35] But what I would tell people is the way you
[01:46:37] what I would tell people is the way you submit a winning proposal is to
[01:46:39] submit a winning proposal is to understand the um
[01:46:42] understand the um the scope of work
[01:46:44] the scope of work and to understand the solicitation. So,
[01:46:46] and to understand the solicitation. So, really understand what they're asking
[01:46:47] really understand what they're asking you to do, and understand what they're
[01:46:49] you to do, and understand what they're asking you to submit. One of the great
[01:46:50] asking you to submit. One of the great things about government contracting is
[01:46:52] things about government contracting is in your solicitation, there's a section
[01:46:54] in your solicitation, there's a section that's called instructions to offerers.
[01:46:56] that's called instructions to offerers. So, the first thing I tell people to do
[01:46:58] So, the first thing I tell people to do after you read the 1442 or 1449,
[01:47:00] after you read the 1442 or 1449, whatever form they put it on, you want
[01:47:02] whatever form they put it on, you want to go straight to the instructions to
[01:47:03] to go straight to the instructions to offerers. The instructions to offerers
[01:47:05] offerers. The instructions to offerers section is going to outline everything
[01:47:06] section is going to outline everything that you must do to be successful. And
[01:47:09] that you must do to be successful. And as long as you do everything that's
[01:47:11] as long as you do everything that's there, and you meet that criteria, you
[01:47:13] there, and you meet that criteria, you should be successful. Most people never
[01:47:16] should be successful. Most people never read the instructions to offerer page,
[01:47:17] read the instructions to offerer page, and that's why they're not successful.
[01:47:19] and that's why they're not successful. Hmm.
[01:47:20] Hmm. And how much does past performance come
[01:47:21] And how much does past performance come into play?
[01:47:22] into play? It depends on what you're going after.
[01:47:24] It depends on what you're going after. So, there's three different types of uh
[01:47:26] So, there's three different types of uh um
[01:47:27] um solicitations.
[01:47:28] solicitations. There is an IFB, which is invitation for
[01:47:30] There is an IFB, which is invitation for bid. There's an RFQ, which is a request
[01:47:33] bid. There's an RFQ, which is a request for quotation. There's an RFP, which is
[01:47:35] for quotation. There's an RFP, which is request for proposal. I listed those
[01:47:37] request for proposal. I listed those three in that order, because that's
[01:47:39] three in that order, because that's order of um
[01:47:40] order of um complexity.
[01:47:42] complexity. Past performance matters most on RFPs.
[01:47:45] Past performance matters most on RFPs. That's why just burns me when people
[01:47:47] That's why just burns me when people say, "Can you give me a proposal
[01:47:48] say, "Can you give me a proposal template?"
[01:47:49] template?" I'm like, "Why are you bidding on
[01:47:50] I'm like, "Why are you bidding on proposals?" "Well, I need a proposal
[01:47:52] proposals?" "Well, I need a proposal template, cuz that's what they say."
[01:47:53] template, cuz that's what they say." "Well, stop bidding proposals."
[01:47:55] "Well, stop bidding proposals." That's just one of the three ways. If
[01:47:57] That's just one of the three ways. If you don't have past performance, and you
[01:47:59] you don't have past performance, and you don't know how to submit a proposal,
[01:48:00] don't know how to submit a proposal, stop going after RFPs.
[01:48:03] stop going after RFPs. Request for proposals require a full
[01:48:05] Request for proposals require a full detailed proposal, which sometimes has
[01:48:07] detailed proposal, which sometimes has past performance, it has experience, it
[01:48:09] past performance, it has experience, it has a number of different factors.
[01:48:11] has a number of different factors. The next one down from that is a request
[01:48:13] The next one down from that is a request for quotation. It's just like what it
[01:48:14] for quotation. It's just like what it sounds like. They're asking you for a
[01:48:16] sounds like. They're asking you for a quote to do this bid. In addition to
[01:48:18] quote to do this bid. In addition to your quote, they're going to ask for
[01:48:20] your quote, they're going to ask for some other form of experience, past
[01:48:23] some other form of experience, past performance.
[01:48:24] performance. The last one is the IFB. An invitation
[01:48:27] The last one is the IFB. An invitation for bid is just a straight price. If you
[01:48:29] for bid is just a straight price. If you have no past performance, the minute you
[01:48:31] have no past performance, the minute you open up sam.gov, you open up a
[01:48:33] open up sam.gov, you open up a solicitation, if it has any of the other
[01:48:35] solicitation, if it has any of the other boxes checked not IFB, close it.
[01:48:38] boxes checked not IFB, close it. If you have no past performance, only
[01:48:40] If you have no past performance, only look at IFBs.
[01:48:43] look at IFBs. The minute you get a little bit better,
[01:48:44] The minute you get a little bit better, now you look at IFBs and RFQs. Once
[01:48:47] now you look at IFBs and RFQs. Once you've been in the game a couple years,
[01:48:48] you've been in the game a couple years, now you go to RFPs.
[01:48:51] now you go to RFPs. But the problem is is people don't
[01:48:52] But the problem is is people don't understand the rules of the game. They
[01:48:54] understand the rules of the game. They just want to play the game. Yeah. Yeah.
[01:48:56] just want to play the game. Yeah. Yeah. What about compliance on the compliance
[01:48:59] What about compliance on the compliance side? I mean, who are you reporting to
[01:49:01] side? I mean, who are you reporting to during these contracts? Do they do like
[01:49:02] during these contracts? Do they do like audits? Like talk to me about that. Man,
[01:49:05] audits? Like talk to me about that. Man, I tell people all the time, you're
[01:49:06] I tell people all the time, you're taking the government's money.
[01:49:08] taking the government's money. So, they going to want to know what you
[01:49:09] So, they going to want to know what you doing with their money. So, compliance
[01:49:11] doing with their money. So, compliance is one of the biggest factors that can
[01:49:14] is one of the biggest factors that can cause a government contractor to fail.
[01:49:16] cause a government contractor to fail. When you are running a government
[01:49:18] When you are running a government contracting business, even at the
[01:49:19] contracting business, even at the smallest level, remember what I told
[01:49:21] smallest level, remember what I told you, every solicitation is written on
[01:49:22] you, every solicitation is written on the same piece of paper. Right? No
[01:49:25] the same piece of paper. Right? No matter the size, no matter the
[01:49:26] matter the size, no matter the complexity, a SF 90, a 1442, a 1449,
[01:49:30] complexity, a SF 90, a 1442, a 1449, these are standard forms that they use.
[01:49:32] these are standard forms that they use. Size of contract doesn't matter. So,
[01:49:34] Size of contract doesn't matter. So, that means the same level of compliance
[01:49:36] that means the same level of compliance that they're going to hold Elon Musk and
[01:49:38] that they're going to hold Elon Musk and SpaceX to, they're going to hold me,
[01:49:40] SpaceX to, they're going to hold me, too.
[01:49:41] too. So, where a lot of people mess up is
[01:49:44] So, where a lot of people mess up is they aren't operating in the right
[01:49:46] they aren't operating in the right manner. Most small businesses, they
[01:49:49] manner. Most small businesses, they operate like mom-and-pop shops, they rob
[01:49:51] operate like mom-and-pop shops, they rob Peter to pay Paul, they don't have
[01:49:53] Peter to pay Paul, they don't have proper accounting systems in place. Uh
[01:49:55] proper accounting systems in place. Uh people they're in the construction space
[01:49:56] people they're in the construction space and none of their employees have OSHA,
[01:49:58] and none of their employees have OSHA, you know, they they they're doing things
[01:50:01] you know, they they they're doing things just trying to get by.
[01:50:02] just trying to get by. When you become a government contractor,
[01:50:04] When you become a government contractor, there is no more trying to get by.
[01:50:05] there is no more trying to get by. Everything has to be done to the highest
[01:50:08] Everything has to be done to the highest level. But, that's also why we make the
[01:50:10] level. But, that's also why we make the type of money we make. We've all heard
[01:50:12] type of money we make. We've all heard the stories before about the golden
[01:50:13] the stories before about the golden hammers and the 24-karat gold toilets.
[01:50:16] hammers and the 24-karat gold toilets. And they're like, "Oh, people are
[01:50:17] And they're like, "Oh, people are selling toilets to the government and a
[01:50:19] selling toilets to the government and a toilet will cost $50, but the government
[01:50:20] toilet will cost $50, but the government paid $1,000." Yes, because I have to
[01:50:23] paid $1,000." Yes, because I have to have a level of insurance. I have to
[01:50:24] have a level of insurance. I have to have all the different things of
[01:50:26] have all the different things of compliance. I have to maintain my
[01:50:27] compliance. I have to maintain my records for 10 years in hard copy and
[01:50:30] records for 10 years in hard copy and digital. So, I need to have hard drives
[01:50:32] digital. So, I need to have hard drives with all my stuff. I got to have a
[01:50:33] with all my stuff. I got to have a storage facility that has all my files.
[01:50:35] storage facility that has all my files. All of that costs money. That's why a
[01:50:37] All of that costs money. That's why a toilet costs $1,000.
[01:50:39] toilet costs $1,000. And so, but people don't understand
[01:50:41] And so, but people don't understand that. So, compliance is one of the most
[01:50:42] that. So, compliance is one of the most things and that's one of the things that
[01:50:43] things and that's one of the things that will knock people out off top. But, the
[01:50:45] will knock people out off top. But, the good thing about it is that the
[01:50:46] good thing about it is that the government pays you for it. So, it's not
[01:50:49] government pays you for it. So, it's not like you got to do it on your own.
[01:50:51] like you got to do it on your own. That is factored into the cost of you
[01:50:53] That is factored into the cost of you doing business. That's why like we
[01:50:54] doing business. That's why like we talked about earlier why those big
[01:50:55] talked about earlier why those big contracts go for so much more money.
[01:50:57] contracts go for so much more money. There's so much more that goes into it.
[01:50:59] There's so much more that goes into it. So, that's why those people are able to
[01:51:01] So, that's why those people are able to get 30% margins.
[01:51:03] get 30% margins. Cuz they got to do so much more that
[01:51:04] Cuz they got to do so much more that that you don't have to do. Yeah, yeah.
[01:51:07] that you don't have to do. Yeah, yeah. All right, so somebody just watched this
[01:51:08] All right, so somebody just watched this video for the last hour and a half, 2
[01:51:10] video for the last hour and a half, 2 hours, however long we've been talking.
[01:51:12] hours, however long we've been talking. What is the immediate next step that
[01:51:14] What is the immediate next step that they need to take if they want to get
[01:51:15] they need to take if they want to get into the space over the next 30 days?
[01:51:17] into the space over the next 30 days? Give give them the give them the
[01:51:18] Give give them the give them the rundown.
[01:51:20] rundown. Man,
[01:51:21] Man, I'm going to start with the I'm going to
[01:51:23] I'm going to start with the I'm going to put my salesman pitch.
[01:51:25] put my salesman pitch. So, the next thing you need to do, if
[01:51:27] So, the next thing you need to do, if you really serious about taking action
[01:51:28] you really serious about taking action in the next 30 days, is get into my
[01:51:31] in the next 30 days, is get into my my 90-day mentorship program. My cohort
[01:51:33] my 90-day mentorship program. My cohort starts on June I'm sorry, on January
[01:51:35] starts on June I'm sorry, on January 27th.
[01:51:36] 27th. >> Okay. So, in the next 30 days, you need
[01:51:37] >> Okay. So, in the next 30 days, you need to sign up, get in that January 27th
[01:51:39] to sign up, get in that January 27th 90-day cohort, and we walk you through
[01:51:40] 90-day cohort, and we walk you through the whole process. If you don't have
[01:51:42] the whole process. If you don't have time to do that, what you could do then
[01:51:43] time to do that, what you could do then is it's simple. Get on sam.gov, get
[01:51:46] is it's simple. Get on sam.gov, get registered, get certified. Start doing
[01:51:49] registered, get certified. Start doing the research, understand the who, what,
[01:51:50] the research, understand the who, what, when, where, how.
[01:51:52] when, where, how. Once you start doing that, then you got
[01:51:54] Once you start doing that, then you got to start bidding. The biggest thing that
[01:51:56] to start bidding. The biggest thing that holds people back is they just don't
[01:51:58] holds people back is they just don't want to bid.
[01:51:59] want to bid. You have to bid, you have to fail. In
[01:52:01] You have to bid, you have to fail. In this business, you cannot be scared of
[01:52:03] this business, you cannot be scared of failure. There is no such thing as
[01:52:04] failure. There is no such thing as failure. Every time you submit a
[01:52:06] failure. Every time you submit a proposal, what you're doing is you're
[01:52:07] proposal, what you're doing is you're putting yourself in front of the
[01:52:08] putting yourself in front of the government. You're allowing them to know
[01:52:10] government. You're allowing them to know that, okay, you exist. You want to do
[01:52:12] that, okay, you exist. You want to do this business. The more they see your
[01:52:13] this business. The more they see your name, they're going to be like, "Okay,
[01:52:14] name, they're going to be like, "Okay, this guy keeps bidding. Let me see what
[01:52:16] this guy keeps bidding. Let me see what he's talking about." Now, that's what
[01:52:17] he's talking about." Now, that's what opens you up for those sole source
[01:52:19] opens you up for those sole source opportunities. That's what opens you up
[01:52:20] opportunities. That's what opens you up for those micro purchases. That's what
[01:52:22] for those micro purchases. That's what opens you up for those limited
[01:52:23] opens you up for those limited competition things on under the
[01:52:25] competition things on under the simplified acquisition threshold. So,
[01:52:27] simplified acquisition threshold. So, you have to just start. You have to
[01:52:29] you have to just start. You have to start submitting bids and you just have
[01:52:31] start submitting bids and you just have to start going. The minute you start
[01:52:32] to start going. The minute you start doing that, the better off you'll be.
[01:52:34] doing that, the better off you'll be. But, I mean, it's getting started is is
[01:52:37] But, I mean, it's getting started is is simple. It'll take you from the time you
[01:52:38] simple. It'll take you from the time you sign up on sam.gov, it'll take you
[01:52:40] sign up on sam.gov, it'll take you anywhere between
[01:52:41] anywhere between give or take 30 days to get your cage
[01:52:43] give or take 30 days to get your cage code back. Once you have your cage code
[01:52:45] code back. Once you have your cage code back, you you start bidding immediately.
[01:52:47] back, you you start bidding immediately. Got it. And what's the biggest outcome
[01:52:49] Got it. And what's the biggest outcome that that you've seen or been a part of
[01:52:51] that that you've seen or been a part of personally just as a kind of just to
[01:52:54] personally just as a kind of just to tell people like show people what's
[01:52:55] tell people like show people what's what's possible. Man, it's crazy. I I'd
[01:52:57] what's possible. Man, it's crazy. I I'd say
[01:52:58] say in my
[01:53:00] in my you know, last 3 years of doing this, um
[01:53:05] I have so many different stories. I have
[01:53:07] I have so many different stories. I have a lot of successes right now cuz right
[01:53:09] a lot of successes right now cuz right now we're doing business acquisitions.
[01:53:11] now we're doing business acquisitions. So, I'm partnering with students and
[01:53:12] So, I'm partnering with students and we're going out and we're acquiring
[01:53:14] we're going out and we're acquiring these baby boomer businesses and we're
[01:53:16] these baby boomer businesses and we're taking these businesses and enrolling
[01:53:18] taking these businesses and enrolling them up and we're scaling them and we're
[01:53:19] them up and we're scaling them and we're doing government contracts. So, the
[01:53:20] doing government contracts. So, the business acquisition has been one of the
[01:53:22] business acquisition has been one of the greatest. But, I'd say outside of that,
[01:53:23] greatest. But, I'd say outside of that, one of the single most successful
[01:53:26] one of the single most successful instances I had is I had a gentleman
[01:53:28] instances I had is I had a gentleman out of Detroit, Michigan. He was in the
[01:53:30] out of Detroit, Michigan. He was in the trucking space, actually. And um
[01:53:33] trucking space, actually. And um he uh initially he wanted to get into
[01:53:36] he uh initially he wanted to get into doing sprinter sprinters and doing
[01:53:38] doing sprinter sprinters and doing non-ambulatory.
[01:53:39] non-ambulatory. Um
[01:53:40] Um but then, he also had some construction
[01:53:42] but then, he also had some construction experience. So, he said, "Well, maybe I
[01:53:43] experience. So, he said, "Well, maybe I can get into doing dump trucks."
[01:53:45] can get into doing dump trucks." So, I said, "Cool." So, I taught him how
[01:53:46] So, I said, "Cool." So, I taught him how to start researching stuff. And he was
[01:53:49] to start researching stuff. And he was actually able to go out and get two BPAs
[01:53:52] actually able to go out and get two BPAs from the US Army Corps of Engineers. And
[01:53:55] from the US Army Corps of Engineers. And he does construction material delivery
[01:53:57] he does construction material delivery in for two different Army Corps
[01:53:58] in for two different Army Corps districts. So, basically running dump
[01:54:00] districts. So, basically running dump truck loads of material
[01:54:01] truck loads of material all over the US. He's got one out in the
[01:54:03] all over the US. He's got one out in the Dakotas and then he has one actually
[01:54:05] Dakotas and then he has one actually here in Philly for the Philadelphia
[01:54:07] here in Philly for the Philadelphia um
[01:54:08] um Army Corps. And that was probably my
[01:54:10] Army Corps. And that was probably my single most like my favorite one because
[01:54:13] single most like my favorite one because he came to me with no government
[01:54:14] he came to me with no government contracts experience. Like literally, he
[01:54:16] contracts experience. Like literally, he was a trucker. Like he didn't know
[01:54:18] was a trucker. Like he didn't know anything about anything. And now he's
[01:54:20] anything about anything. And now he's doing this year he'll do eight figures
[01:54:22] doing this year he'll do eight figures in government contracts and he doesn't
[01:54:24] in government contracts and he doesn't own one truck.
[01:54:26] own one truck. He essentially runs a He essentially
[01:54:28] He essentially runs a He essentially runs a dispatch company. Wow.
[01:54:30] runs a dispatch company. Wow. >> dispatches dump truck loads all over the
[01:54:31] >> dispatches dump truck loads all over the US for the Army Corps of Engineers.
[01:54:33] US for the Army Corps of Engineers. >> You said BPAs, what's that?
[01:54:34] >> You said BPAs, what's that? >> That's a uh blanket agreement. So,
[01:54:37] >> That's a uh blanket agreement. So, basically, he has two 10-year contracts
[01:54:39] basically, he has two 10-year contracts with the Army Corps and basically, he
[01:54:41] with the Army Corps and basically, he doesn't have to bid. So, essentially,
[01:54:44] doesn't have to bid. So, essentially, every day when they need material, they
[01:54:45] every day when they need material, they just send him an email and say, "We need
[01:54:47] just send him an email and say, "We need 5,000 tons of lime rock delivered here."
[01:54:50] 5,000 tons of lime rock delivered here." And then he goes out and he does that
[01:54:52] And then he goes out and he does that and it just he just does orders all day
[01:54:54] and it just he just does orders all day long now for two different Army Corps
[01:54:55] long now for two different Army Corps districts.
[01:54:55] districts. >> no trucks.
[01:54:56] >> no trucks. >> He owns no trucks. His His goal for 2026
[01:54:58] >> He owns no trucks. His His goal for 2026 is actually
[01:55:00] is actually um because like I said, he has it for
[01:55:02] um because like I said, he has it for two different Army Corps districts. He
[01:55:03] two different Army Corps districts. He has one for Philly, has one for Rock
[01:55:05] has one for Philly, has one for Rock Island. And so,
[01:55:07] Island. And so, his goal is to put at least one or two
[01:55:09] his goal is to put at least one or two dump trucks in each facility so that now
[01:55:12] dump trucks in each facility so that now when he's running his loads, one out of
[01:55:14] when he's running his loads, one out of every, you know, five, 10 loads will be
[01:55:16] every, you know, five, 10 loads will be a a load that he owns fully. And so,
[01:55:19] a a load that he owns fully. And so, that will increase his revenue. So,
[01:55:21] that will increase his revenue. So, he'll he'll do he did seven figures last
[01:55:24] he'll he'll do he did seven figures last year. He'll probably touch eight figures
[01:55:25] year. He'll probably touch eight figures this year in 2026.
[01:55:28] this year in 2026. Um and so, if he can put a truck in
[01:55:29] Um and so, if he can put a truck in there with it, his margins will go from,
[01:55:31] there with it, his margins will go from, you know, 10, 12% to probably close to
[01:55:34] you know, 10, 12% to probably close to 40%. No doubt, no doubt. And when's the
[01:55:36] 40%. No doubt, no doubt. And when's the cohort start? Let's drop that one more
[01:55:38] cohort start? Let's drop that one more time. January 27th is the next cohort.
[01:55:40] time. January 27th is the next cohort. >> Soon, man.
[01:55:41] >> Soon, man. >> [snorts]
[01:55:41] >> [snorts] >> How many people do you take? Um 50
[01:55:43] >> How many people do you take? Um 50 people in the cohort is all it take. Um
[01:55:46] people in the cohort is all it take. Um it's very economical. It's a It's a
[01:55:47] it's very economical. It's a It's a great way to get started. The 90-day
[01:55:49] great way to get started. The 90-day mentorships have been one of my most
[01:55:51] mentorships have been one of my most favorite things to do. I started doing
[01:55:52] favorite things to do. I started doing them last year.
[01:55:54] them last year. And I started doing them as private. So,
[01:55:56] And I started doing them as private. So, just one-on-one 90-day mentorships. And
[01:55:58] just one-on-one 90-day mentorships. And literally, every person that's come
[01:56:00] literally, every person that's come through there has has done exceptionally
[01:56:01] through there has has done exceptionally well. One of the last guys that did a
[01:56:03] well. One of the last guys that did a private with me uh that ended in
[01:56:05] private with me uh that ended in September.
[01:56:07] September. Uh he was in that fourth quarter private
[01:56:08] Uh he was in that fourth quarter private cuz you know, the government works
[01:56:09] cuz you know, the government works October 1st to September 30th. So, July,
[01:56:12] October 1st to September 30th. So, July, August, September is the fourth quarter.
[01:56:13] August, September is the fourth quarter. So, he did one for the fourth quarter
[01:56:15] So, he did one for the fourth quarter and he was able to secure $100,000 worth
[01:56:18] and he was able to secure $100,000 worth of contracts in that 90 days.
[01:56:20] of contracts in that 90 days. And so, yeah. So, it's those have always
[01:56:23] And so, yeah. So, it's those have always been my favorite. And then for 2026, I
[01:56:24] been my favorite. And then for 2026, I said, "You know what? I used to really
[01:56:26] said, "You know what? I used to really cap them cuz I was doing them as
[01:56:27] cap them cuz I was doing them as private. So, it would just be like,
[01:56:28] private. So, it would just be like, "Hey, I'm working with one or two people
[01:56:29] "Hey, I'm working with one or two people a quarter. That's it." And I said, "You
[01:56:31] a quarter. That's it." And I said, "You know what? Let me open it up and do it
[01:56:32] know what? Let me open it up and do it in a group setting and then I can take
[01:56:35] in a group setting and then I can take again up to about 50 people in one
[01:56:36] again up to about 50 people in one setting and and then I do that for 90
[01:56:39] setting and and then I do that for 90 days and kind of teach the same things
[01:56:41] days and kind of teach the same things to everybody all together. And so, I'm
[01:56:43] to everybody all together. And so, I'm anxious to see the success rates out of
[01:56:45] anxious to see the success rates out of that. But, like I said, every in the
[01:56:47] that. But, like I said, every in the people that have come through us that
[01:56:49] people that have come through us that we've helped, everyone's had success
[01:56:51] we've helped, everyone's had success that has worked.
[01:56:53] that has worked. The people that don't put the work in,
[01:56:55] The people that don't put the work in, those are the people that don't have
[01:56:56] those are the people that don't have success. 100%.
[01:56:57] success. 100%. >> Cuz I could I can give it I can give you
[01:56:58] >> Cuz I could I can give it I can give you the whole thing. Like I said, I just
[01:56:59] the whole thing. Like I said, I just gave you the the play with the the vans.
[01:57:01] gave you the the play with the the vans. >> Right. And who who's going to do that,
[01:57:03] >> Right. And who who's going to do that, right? Like everybody who just now heard
[01:57:04] right? Like everybody who just now heard that
[01:57:05] that >> Who's going to ask me Literally, that
[01:57:07] >> Who's going to ask me Literally, that Honestly, bro, that's been That's the
[01:57:09] Honestly, bro, that's been That's the problem.
[01:57:09] problem. >> That's the problem.
[01:57:10] >> That's the problem. >> will tell me and I'll literally sit
[01:57:11] >> will tell me and I'll literally sit there and give them a whole I I would do
[01:57:12] there and give them a whole I I would do stuff on my group calls
[01:57:14] stuff on my group calls and I'll pull a bid up and I'll
[01:57:16] and I'll pull a bid up and I'll literally bid the whole thing.
[01:57:18] literally bid the whole thing. And I'll be like, "Okay, now y'all go do
[01:57:19] And I'll be like, "Okay, now y'all go do it cuz I don't want it." Right. And then
[01:57:21] it cuz I don't want it." Right. And then people won't do it. Right. So, that's
[01:57:23] people won't do it. Right. So, that's the challenge, y'all. We just now got
[01:57:26] the challenge, y'all. We just now got the play right here.
[01:57:27] the play right here. >> Philadelphia non-ambulatory
[01:57:30] >> Philadelphia non-ambulatory non-emergency medical transport coming
[01:57:33] non-emergency medical transport coming up in January.
[01:57:35] up in January. >> 30 days.
[01:57:35] >> 30 days. >> Yep, January to be out.
[01:57:36] >> Yep, January to be out. >> Go bid.
[01:57:38] >> Go bid. Go go throw throw it throw it against
[01:57:40] Go go throw throw it throw it against the wall, see what sticks, man, you
[01:57:41] the wall, see what sticks, man, you know? That's it.
[01:57:42] know? That's it. >> That's it. It's crazy. All right, so
[01:57:46] >> That's it. It's crazy. All right, so recently
[01:57:47] recently not necessarily recently, but more
[01:57:49] not necessarily recently, but more lately you've gotten into acquisitions.
[01:57:51] lately you've gotten into acquisitions. Tell Tell me about acquisitions. What
[01:57:53] Tell Tell me about acquisitions. What type of businesses are you acquiring and
[01:57:55] type of businesses are you acquiring and and and what are you doing with that?
[01:57:57] and and what are you doing with that? Yeah, so the acquisition piece is really
[01:57:58] Yeah, so the acquisition piece is really dope for me because one of the things
[01:58:01] dope for me because one of the things that I noticed when I was going through
[01:58:02] that I noticed when I was going through the process of helping people with
[01:58:03] the process of helping people with government contracts was there was a
[01:58:05] government contracts was there was a couple ways couple things that were
[01:58:06] couple ways couple things that were stalling people, right? And so,
[01:58:09] stalling people, right? And so, one of the main ones is like we touched
[01:58:11] one of the main ones is like we touched on past performance.
[01:58:12] on past performance. So, to get to a certain level, you're
[01:58:14] So, to get to a certain level, you're going to need past performance. But,
[01:58:15] going to need past performance. But, when you haven't been doing it that
[01:58:16] when you haven't been doing it that long, how do you get it?
[01:58:18] long, how do you get it? Next one was
[01:58:20] Next one was uh cash flow.
[01:58:21] uh cash flow. A lot of people come to me and they want
[01:58:23] A lot of people come to me and they want to get into government contracting, but
[01:58:24] to get into government contracting, but they don't want to leave their 9-to-5
[01:58:25] they don't want to leave their 9-to-5 job.
[01:58:27] job. So, how do they do it?
[01:58:28] So, how do they do it? Next thing is resources. I want to get
[01:58:30] Next thing is resources. I want to get into this, but I don't have the
[01:58:32] into this, but I don't have the equipment. I don't have the employees.
[01:58:34] equipment. I don't have the employees. So, I don't know if you have familiar
[01:58:36] So, I don't know if you have familiar you are with the the silver tsunami.
[01:58:38] you are with the the silver tsunami. But, right now all the baby boomers are
[01:58:39] But, right now all the baby boomers are hitting retirement age. So, by 2030, all
[01:58:42] hitting retirement age. So, by 2030, all of the baby boomers will be over 65
[01:58:44] of the baby boomers will be over 65 years old. With that happening, we're
[01:58:47] years old. With that happening, we're going through the greatest wealth
[01:58:48] going through the greatest wealth transfer in US history. Over $10
[01:58:50] transfer in US history. Over $10 trillion of assets will change hands
[01:58:52] trillion of assets will change hands between now and 2030. 2024 to 2027 will
[01:58:55] between now and 2030. 2024 to 2027 will be the most active years. So, what's
[01:58:57] be the most active years. So, what's happening is all of the baby boomers
[01:58:59] happening is all of the baby boomers that have your landscaping companies,
[01:59:00] that have your landscaping companies, your construction companies, your your
[01:59:02] your construction companies, your your trucking companies, all this, they're
[01:59:04] trucking companies, all this, they're getting older and they're going to
[01:59:05] getting older and they're going to retire. The problem is is they don't
[01:59:07] retire. The problem is is they don't have anybody to pass these companies
[01:59:08] have anybody to pass these companies down to. Their kids want to be
[01:59:10] down to. Their kids want to be TikTokers. They want to be YouTubers.
[01:59:11] TikTokers. They want to be YouTubers. They don't want to do that type of work.
[01:59:14] They don't want to do that type of work. But these companies have been doing
[01:59:15] But these companies have been doing government contracting for 10, 15, 20
[01:59:17] government contracting for 10, 15, 20 years.
[01:59:18] years. So, we've learned how to acquire these
[01:59:20] So, we've learned how to acquire these businesses. So, now we acquire the past
[01:59:22] businesses. So, now we acquire the past performance. So, now we have that 10, 20
[01:59:24] performance. So, now we have that 10, 20 years of past performance. Now, we have
[01:59:26] years of past performance. Now, we have the assets to go out there and do the
[01:59:28] the assets to go out there and do the work. Now, the person who had a 9-5, now
[01:59:31] work. Now, the person who had a 9-5, now they have cash flow because the owner of
[01:59:33] they have cash flow because the owner of the business was making $150,000 a year.
[01:59:35] the business was making $150,000 a year. Now, he's gone. Now, we insert you. Now,
[01:59:37] Now, he's gone. Now, we insert you. Now, you make $150,000 a year.
[01:59:39] you make $150,000 a year. So, the business acquisitions has been
[01:59:41] So, the business acquisitions has been one of the biggest things that we've
[01:59:42] one of the biggest things that we've started doing in the last 2 years. And
[01:59:43] started doing in the last 2 years. And for me,
[01:59:45] for me, it was something that I was interested
[01:59:46] it was something that I was interested in doing as a personal uh thing to
[01:59:48] in doing as a personal uh thing to continue my wealth-building journey.
[01:59:50] continue my wealth-building journey. Taking the the knowledge that I learned
[01:59:52] Taking the the knowledge that I learned from when I sold my business
[01:59:54] from when I sold my business and to start buying businesses to create
[01:59:56] and to start buying businesses to create a large conglomerate for myself,
[01:59:57] a large conglomerate for myself, conglomerate for myself, to then exit
[01:59:59] conglomerate for myself, to then exit that the right way to get my big number.
[02:00:02] that the right way to get my big number. And so, now what we're doing is taking
[02:00:04] And so, now what we're doing is taking that knowledge and helping
[02:00:06] that knowledge and helping others do it because, like I said, with
[02:00:08] others do it because, like I said, with the acquisitions, you're skipping the
[02:00:09] the acquisitions, you're skipping the startup. So, now you're skipping that 2
[02:00:11] startup. So, now you're skipping that 2 years and that $100,000 that the SBA
[02:00:13] years and that $100,000 that the SBA talks about. You're skipping all of that
[02:00:15] talks about. You're skipping all of that and you're getting right into business.
[02:00:16] and you're getting right into business. And it doesn't cost a lot of money
[02:00:18] And it doesn't cost a lot of money because we're buying government
[02:00:19] because we're buying government contracting businesses. So, now we're
[02:00:21] contracting businesses. So, now we're able to leverage all those financial
[02:00:22] able to leverage all those financial tools like we talked about, like with
[02:00:24] tools like we talked about, like with the SBA funding, like with the
[02:00:25] the SBA funding, like with the leveraging of the contracts and all
[02:00:27] leveraging of the contracts and all that. We can use all of that to acquire
[02:00:29] that. We can use all of that to acquire the asset that is the business.
[02:00:31] the asset that is the business. So, that's what we've been doing for the
[02:00:32] So, that's what we've been doing for the last year and that's been
[02:00:34] last year and that's been hands-down one of the best the best
[02:00:36] hands-down one of the best the best things I've ever done. Tell me about the
[02:00:38] things I've ever done. Tell me about the acquisition process. It used to be hard,
[02:00:41] acquisition process. It used to be hard, but it's very simple. Okay. Um right
[02:00:43] but it's very simple. Okay. Um right now, like I said, we're going after the
[02:00:45] now, like I said, we're going after the baby boomers. So, these are people that
[02:00:46] baby boomers. So, these are people that are looking to retire. They're looking
[02:00:48] are looking to retire. They're looking to get out of the game.
[02:00:50] to get out of the game. We step into them, making an offer to uh
[02:00:52] We step into them, making an offer to uh for their business.
[02:00:53] for their business. Um asset value plus, you know, a
[02:00:55] Um asset value plus, you know, a multiple on their EBITDA.
[02:00:57] multiple on their EBITDA. And typically, if we're going SBA, it
[02:01:00] And typically, if we're going SBA, it can take anywhere from 6 to 9 months to
[02:01:02] can take anywhere from 6 to 9 months to close an SBA deal. If we're doing owner
[02:01:04] close an SBA deal. If we're doing owner finance deals, we can close in 60 days
[02:01:06] finance deals, we can close in 60 days cuz it's literally just structuring the
[02:01:08] cuz it's literally just structuring the deal.
[02:01:08] deal. Owner finance deals are happening a lot
[02:01:11] Owner finance deals are happening a lot and people don't understand why, but the
[02:01:12] and people don't understand why, but the reality is you got to think somebody's
[02:01:14] reality is you got to think somebody's had a company for 20 years and they've
[02:01:16] had a company for 20 years and they've been making $10 million a year for 20
[02:01:17] been making $10 million a year for 20 years. Do they really need your money?
[02:01:19] years. Do they really need your money? Right. No, they don't. They just don't
[02:01:21] Right. No, they don't. They just don't want to close the business cuz they
[02:01:22] want to close the business cuz they don't want to fire all their employees.
[02:01:24] don't want to fire all their employees. And then, like we talked about, the
[02:01:25] And then, like we talked about, the government contracting thing is a it's a
[02:01:27] government contracting thing is a it's a relationship.
[02:01:28] relationship. So, if they shut down, the government's
[02:01:30] So, if they shut down, the government's like, "Hey, man, why'd you shut down
[02:01:30] like, "Hey, man, why'd you shut down your business?" So, they want to give it
[02:01:32] your business?" So, they want to give it to somebody who can keep it going. So,
[02:01:34] to somebody who can keep it going. So, owner financing is a great a great great
[02:01:36] owner financing is a great a great great great great tactic right now to use. How
[02:01:39] great great tactic right now to use. How do you find How do you find those
[02:01:40] do you find How do you find those opportunities, especially people who
[02:01:42] opportunities, especially people who want to do seller financing? Like, where
[02:01:45] want to do seller financing? Like, where you doing your research?
[02:01:47] you doing your research? Right now, there's three primary ways
[02:01:49] Right now, there's three primary ways that we find businesses. So, the first
[02:01:51] that we find businesses. So, the first way is going to be your typical way,
[02:01:53] way is going to be your typical way, your BizBuySell, your LoopNet, your
[02:01:55] your BizBuySell, your LoopNet, your business broker network. You know,
[02:01:57] business broker network. You know, business brokers have businesses for
[02:01:59] business brokers have businesses for sale
[02:02:00] sale all the time.
[02:02:01] all the time. That's your first way. Second way is
[02:02:02] That's your first way. Second way is going to be uh through social media,
[02:02:04] going to be uh through social media, through your Facebook groups, LinkedIn.
[02:02:06] through your Facebook groups, LinkedIn. There's you can find all those different
[02:02:08] There's you can find all those different groups of people trying to sell
[02:02:09] groups of people trying to sell businesses.
[02:02:10] businesses. The third way, which is specific to
[02:02:11] The third way, which is specific to government contracting, is we search
[02:02:14] government contracting, is we search expired uh SAM registration.
[02:02:17] expired uh SAM registration. So, we find somebody who was previously
[02:02:19] So, we find somebody who was previously registered, whose SAM registration may
[02:02:21] registered, whose SAM registration may have lapsed within the last 12 to 24
[02:02:23] have lapsed within the last 12 to 24 months,
[02:02:24] months, meaning that for some reason they're not
[02:02:25] meaning that for some reason they're not active right now, and then reach out to
[02:02:27] active right now, and then reach out to them and see if they're willing to sell
[02:02:28] them and see if they're willing to sell their business. And then, those are the
[02:02:30] their business. And then, those are the best deals to negotiate because you
[02:02:31] best deals to negotiate because you don't have brokers involved, you don't
[02:02:33] don't have brokers involved, you don't have any of that. You're negotiating
[02:02:34] have any of that. You're negotiating directly with the seller. Can you give
[02:02:36] directly with the seller. Can you give me an idea of a business that you've
[02:02:37] me an idea of a business that you've acquired? Yeah. So, um this in 2025, we
[02:02:41] acquired? Yeah. So, um this in 2025, we did four acquisitions.
[02:02:43] did four acquisitions. Um I did two for myself and two with um
[02:02:46] Um I did two for myself and two with um students.
[02:02:47] students. So, I had one student who purchased a
[02:02:49] So, I had one student who purchased a roofing company in Orlando. Um we
[02:02:52] roofing company in Orlando. Um we purchased the roofing company in
[02:02:53] purchased the roofing company in Orlando. We paid $750,000 for it. It
[02:02:57] Orlando. We paid $750,000 for it. It came with assets and revenue.
[02:02:59] came with assets and revenue. Uh 2025, we ended off doing about $2
[02:03:02] Uh 2025, we ended off doing about $2 million in revenue for that business. Uh
[02:03:04] million in revenue for that business. Uh set it up on owner financing. So, didn't
[02:03:07] set it up on owner financing. So, didn't go SBA, didn't need a bank, didn't need
[02:03:09] go SBA, didn't need a bank, didn't need credit, didn't need anything like that.
[02:03:11] credit, didn't need anything like that. We actually used the receivables of the
[02:03:13] We actually used the receivables of the business to finance. So, basically, we
[02:03:17] business to finance. So, basically, we collateralized the receivables. So,
[02:03:19] collateralized the receivables. So, basically, we took factored them faster.
[02:03:21] basically, we took factored them faster. Mhm. Paid the owner that as the down
[02:03:23] Mhm. Paid the owner that as the down payment, then worked them off, and then
[02:03:25] payment, then worked them off, and then we make payments to the owner for the
[02:03:27] we make payments to the owner for the next 36 months.
[02:03:29] next 36 months. That business was awarded $2.5 million
[02:03:31] That business was awarded $2.5 million in government contracts in November of
[02:03:33] in government contracts in November of this year. So, we're starting out 2026
[02:03:36] this year. So, we're starting out 2026 already at $2.5 million in revenue. So,
[02:03:38] already at $2.5 million in revenue. So, the goal is to get that company up to $5
[02:03:40] the goal is to get that company up to $5 million in revenue at about a 25% profit
[02:03:42] million in revenue at about a 25% profit margin in 2026. Wow. Yeah. So, it wasn't
[02:03:45] margin in 2026. Wow. Yeah. So, it wasn't a government contracting business prior
[02:03:48] a government contracting business prior to you got to the acquisition.
[02:03:49] to you got to the acquisition. >> It was, but it was it was small. They
[02:03:51] >> It was, but it was it was small. They were doing residential and small
[02:03:52] were doing residential and small government commercial. So, they were
[02:03:53] government commercial. So, they were doing smaller stuff. Got it. Um and then
[02:03:56] doing smaller stuff. Got it. Um and then we took it and we just scaled it up and
[02:03:57] we took it and we just scaled it up and we're doing larger government contracts.
[02:03:59] we're doing larger government contracts. Okay. So, that that was a that was one
[02:04:01] Okay. So, that that was a that was one of the good ones.
[02:04:02] of the good ones. Um one of the ones I picked up is a uh
[02:04:04] Um one of the ones I picked up is a uh metal building company.
[02:04:06] metal building company. They were doing small government metal
[02:04:08] They were doing small government metal buildings. So, like um
[02:04:10] buildings. So, like um small hangars and stuff like that. So,
[02:04:13] small hangars and stuff like that. So, picked that up and we'll scale that to
[02:04:14] picked that up and we'll scale that to probably 3 million this year.
[02:04:17] probably 3 million this year. So, it's just um the acquisitions are
[02:04:19] So, it's just um the acquisitions are great and both of those were done owner
[02:04:20] great and both of those were done owner finance. So, no banks, no nothing, no
[02:04:24] finance. So, no banks, no nothing, no real big money down out of pocket.
[02:04:27] real big money down out of pocket. Um but we're able to get in there. They
[02:04:28] Um but we're able to get in there. They have assets. They have people. They have
[02:04:31] have assets. They have people. They have the past performance, which is great.
[02:04:32] the past performance, which is great. So, we picked up existing contract
[02:04:34] So, we picked up existing contract vehicles.
[02:04:35] vehicles. So, like with that with that company
[02:04:37] So, like with that with that company does metal building, they have a
[02:04:38] does metal building, they have a multi-year uh buy board contract, which
[02:04:41] multi-year uh buy board contract, which is like a GSA schedule.
[02:04:42] is like a GSA schedule. So, basically, we don't have to bid on
[02:04:44] So, basically, we don't have to bid on work. The agencies call us and they buy
[02:04:46] work. The agencies call us and they buy off of the schedule that they already
[02:04:48] off of the schedule that they already have in place.
[02:04:49] have in place. So, all we're doing is just marketing to
[02:04:51] So, all we're doing is just marketing to the agencies that we're back active
[02:04:53] the agencies that we're back active because the old owner was about he's
[02:04:55] because the old owner was about he's like in his uh late 70s.
[02:04:57] like in his uh late 70s. So, he just wasn't active anymore. He
[02:04:59] So, he just wasn't active anymore. He wasn't calling If his phone rang, he did
[02:05:01] wasn't calling If his phone rang, he did the work, but he wasn't going out there
[02:05:02] the work, but he wasn't going out there hustling. So, we're taking that contract
[02:05:04] hustling. So, we're taking that contract and we're hustling that contract. So, is
[02:05:06] and we're hustling that contract. So, is the goal to buy the business, increase
[02:05:07] the goal to buy the business, increase the value, and then you sell it? That's
[02:05:09] the value, and then you sell it? That's the goal. That's the goal. How long do
[02:05:11] the goal. That's the goal. How long do you hold on to it before you exit?
[02:05:13] you hold on to it before you exit? So, it depends on the entity and it
[02:05:15] So, it depends on the entity and it depends on the contracts that are in
[02:05:16] depends on the contracts that are in place. Um my exit strategy right now is
[02:05:18] place. Um my exit strategy right now is 36 months. So, I'm going to turn over my
[02:05:20] 36 months. So, I'm going to turn over my businesses in 36 months.
[02:05:22] businesses in 36 months. Um just to give people perspective and
[02:05:24] Um just to give people perspective and not to get too deep with the numbers,
[02:05:26] not to get too deep with the numbers, but as you can tell, I love numbers.
[02:05:28] but as you can tell, I love numbers. Um essentially, if you buy a business
[02:05:30] Um essentially, if you buy a business for a million dollars at a 3x multiple,
[02:05:33] for a million dollars at a 3x multiple, so that means that business is doing a
[02:05:34] so that means that business is doing a little bit over $300,000 a year in
[02:05:36] little bit over $300,000 a year in profit.
[02:05:38] profit. Take that business, scale it up to 5
[02:05:40] Take that business, scale it up to 5 million.
[02:05:42] million. Do that same 5 million and if you were
[02:05:44] Do that same 5 million and if you were to take those same numbers and say it
[02:05:46] to take those same numbers and say it was doing that 30% in profit, 5 million
[02:05:48] was doing that 30% in profit, 5 million would be 1.5 million in profit. That 1.5
[02:05:52] would be 1.5 million in profit. That 1.5 million, you would now get 5x on it
[02:05:54] million, you would now get 5x on it instead of 3x. You get 5x on that,
[02:05:56] instead of 3x. You get 5x on that, that's 7.5 million. So, you take a
[02:05:58] that's 7.5 million. So, you take a company that you bought for a million,
[02:06:00] company that you bought for a million, you sell it for 7.5, you make $6.5
[02:06:02] you sell it for 7.5, you make $6.5 million
[02:06:03] million in 36 months. In addition to that,
[02:06:05] in 36 months. In addition to that, you're making money every month in the
[02:06:08] you're making money every month in the form of a salary plus distributions
[02:06:10] form of a salary plus distributions because you're still making that profit
[02:06:12] because you're still making that profit margin on that.
[02:06:13] margin on that. So, essentially, that's the easy way to
[02:06:14] So, essentially, that's the easy way to go about it. I have a goal and a vision
[02:06:16] go about it. I have a goal and a vision for what I want to sell for in 36 to 48
[02:06:18] for what I want to sell for in 36 to 48 months. And so, then for me, by me
[02:06:21] months. And so, then for me, by me reaching my goal, I'm going to help a
[02:06:22] reaching my goal, I'm going to help a bunch of other individuals reach smaller
[02:06:24] bunch of other individuals reach smaller goals on that road to get there. And you
[02:06:26] goals on that road to get there. And you have a certain type of company that you
[02:06:28] have a certain type of company that you look for, right?
[02:06:30] look for, right? Just government contracting businesses.
[02:06:31] Just government contracting businesses. As long as they're government
[02:06:32] As long as they're government contracting, that's all. That's it.
[02:06:33] contracting, that's all. That's it. Yeah, the only thing is, like I tell
[02:06:35] Yeah, the only thing is, like I tell people, there's out of those member that
[02:06:37] people, there's out of those member that talked about the five different major
[02:06:39] talked about the five different major sectors,
[02:06:41] sectors, the only [cough and clears throat] two
[02:06:41] the only [cough and clears throat] two of those five major sectors that I don't
[02:06:43] of those five major sectors that I don't particularly play in heavily are defense
[02:06:46] particularly play in heavily are defense and IT. And the only reason is I don't
[02:06:49] and IT. And the only reason is I don't do a lot of IT cuz I mean, you've been
[02:06:52] do a lot of IT cuz I mean, you've been talking to me. I'm not a IT guy. You
[02:06:54] talking to me. I'm not a IT guy. You know what I'm saying?
[02:06:55] know what I'm saying? Right, right, right. So, I don't do a
[02:06:56] Right, right, right. So, I don't do a lot of IT and then I don't do defense
[02:06:58] lot of IT and then I don't do defense cuz I just don't like killing people.
[02:07:00] cuz I just don't like killing people. Like I got it. There's nothing wrong
[02:07:02] Like I got it. There's nothing wrong with it. It's just I personally don't
[02:07:03] with it. It's just I personally don't like killing people. Not your thing. So,
[02:07:05] like killing people. Not your thing. So, it's not my thing.
[02:07:06] it's not my thing. >> [laughter]
[02:07:06] >> [laughter] >> So, I don't do defense and I don't
[02:07:07] >> So, I don't do defense and I don't really do IT. I particularly health
[02:07:10] really do IT. I particularly health care, I love. Like we talked about, the
[02:07:12] care, I love. Like we talked about, the VA work.
[02:07:13] VA work. Construction, I love because we're
[02:07:16] Construction, I love because we're running out of skilled construction
[02:07:17] running out of skilled construction labor in America. So, right now,
[02:07:20] labor in America. So, right now, carpenters make more than software
[02:07:21] carpenters make more than software engineers.
[02:07:23] engineers. And then, facilities, I really love
[02:07:25] And then, facilities, I really love because nobody wants to be a janitor.
[02:07:27] because nobody wants to be a janitor. Right. Right. And I don't know the last
[02:07:29] Right. Right. And I don't know the last time you checked, but every time you
[02:07:31] time you checked, but every time you turn on and you look at the White House
[02:07:32] turn on and you look at the White House lawn, it's always cut. That means
[02:07:34] lawn, it's always cut. That means somebody's cutting the grass at the
[02:07:35] somebody's cutting the grass at the White House. Yeah. That means somebody's
[02:07:37] White House. Yeah. That means somebody's cleaning the toilets at the White House.
[02:07:38] cleaning the toilets at the White House. And I've never seen a roach run behind
[02:07:40] And I've never seen a roach run behind the president's head when he's on the
[02:07:41] the president's head when he's on the camera. [laughter]
[02:07:42] camera. [laughter] So, that means there's some sort of pest
[02:07:43] So, that means there's some sort of pest control happening at the White House.
[02:07:45] control happening at the White House. So, facilities is always going to be
[02:07:47] So, facilities is always going to be needed, but nobody wants to be a
[02:07:48] needed, but nobody wants to be a landscaper, pest control, or janitor.
[02:07:50] landscaper, pest control, or janitor. Mhm. So, I love facilities. Facilities
[02:07:53] Mhm. So, I love facilities. Facilities is the easiest, lowest barrier of entry
[02:07:56] is the easiest, lowest barrier of entry for anybody to get into because what
[02:07:58] for anybody to get into because what does it take to clean a toilet?
[02:08:00] does it take to clean a toilet? Clorox and a sponge. Yeah. So, for $15,
[02:08:04] Clorox and a sponge. Yeah. So, for $15, you can become a janitorial company.
[02:08:06] you can become a janitorial company. 100%.
[02:08:07] 100%. >> [laughter]
[02:08:08] >> [laughter] >> It don't get no easier than that. Yeah,
[02:08:10] >> It don't get no easier than that. Yeah, man. You don't need no skills. You don't
[02:08:12] man. You don't need no skills. You don't need nothing. $15 and a dream. That's
[02:08:14] need nothing. $15 and a dream. That's for sure. And so, I love facilities. I
[02:08:16] for sure. And so, I love facilities. I love construction. I love health care.
[02:08:18] love construction. I love health care. Um but IT, great. IT has some of the
[02:08:21] Um but IT, great. IT has some of the highest multiples.
[02:08:23] highest multiples. So, you can get some of your best
[02:08:24] So, you can get some of your best multiples in IT because um you know,
[02:08:26] multiples in IT because um you know, SaaS companies that have monthly
[02:08:28] SaaS companies that have monthly recurring revenue, they sell for great
[02:08:29] recurring revenue, they sell for great margins. Um defense companies are also
[02:08:32] margins. Um defense companies are also good. If you can get [clears throat]
[02:08:33] good. If you can get [clears throat] multi-year the defense contracts, those
[02:08:35] multi-year the defense contracts, those sell for great multiples. So, any any
[02:08:38] sell for great multiples. So, any any any government contracting business,
[02:08:39] any government contracting business, I'll get into.
[02:08:41] I'll get into. Yeah. When When are you going to retire,
[02:08:42] Yeah. When When are you going to retire, man?
[02:08:44] man? So, I turn 45 in 2026. I'm giving myself
[02:08:48] So, I turn 45 in 2026. I'm giving myself 5 years. So, 50. 50, I'm out. So, 50 is
[02:08:50] 5 years. So, 50. 50, I'm out. So, 50 is you plan on retiring.
[02:08:51] you plan on retiring. >> out. You'll sell everything and then
[02:08:53] >> out. You'll sell everything and then Yeah, 50, I'm out. You'll go be on an
[02:08:54] Yeah, 50, I'm out. You'll go be on an island somewhere. Nah, I'm never going
[02:08:55] island somewhere. Nah, I'm never going to stop. I'm still going to [laughter]
[02:08:56] to stop. I'm still going to [laughter] worry. Like, you know, 50 50 I'm going
[02:08:59] worry. Like, you know, 50 50 I'm going to 50 I'm out and then I just want to
[02:09:01] to 50 I'm out and then I just want to continue to to to mentor and help
[02:09:03] continue to to to mentor and help people. I want to help people, you know,
[02:09:05] people. I want to help people, you know, reach their dreams. I've got some great,
[02:09:07] reach their dreams. I've got some great, you know, mentees underneath my
[02:09:08] you know, mentees underneath my underneath me now. I mean, some guys
[02:09:11] underneath me now. I mean, some guys that I could see that are going to be
[02:09:12] that I could see that are going to be way bigger than me. And so, I'm excited
[02:09:14] way bigger than me. And so, I'm excited to spend the next 10 15 years helping
[02:09:16] to spend the next 10 15 years helping them grow.
[02:09:17] them grow. You know, I got one brother, he's like
[02:09:18] You know, I got one brother, he's like 29 years old. He started with me 2 years
[02:09:21] 29 years old. He started with me 2 years ago. He was working as a construction uh
[02:09:24] ago. He was working as a construction uh project manager.
[02:09:25] project manager. Making $125,000 a year. This year, he he
[02:09:29] Making $125,000 a year. This year, he he did like $3 million with his own
[02:09:31] did like $3 million with his own government contracting construction
[02:09:32] government contracting construction business. We're about to do an
[02:09:33] business. We're about to do an acquisition now in 2026, and he's buying
[02:09:36] acquisition now in 2026, and he's buying another company. That company is doing
[02:09:38] another company. That company is doing $3 million.
[02:09:39] $3 million. So, 2026, he'll do 6 or 7 million
[02:09:42] So, 2026, he'll do 6 or 7 million between his company and his new
[02:09:43] between his company and his new acquisition coming together.
[02:09:45] acquisition coming together. 2027 will take him to 10 million with no
[02:09:47] 2027 will take him to 10 million with no problem. He'll be at He'll be at $10
[02:09:49] problem. He'll be at He'll be at $10 million before he's 35.
[02:09:51] million before he's 35. I didn't hit $10 million till I was
[02:09:53] I didn't hit $10 million till I was >> [laughter]
[02:09:54] >> [laughter] >> close to 40. Like, you know what I'm
[02:09:56] >> close to 40. Like, you know what I'm saying?
[02:09:57] saying? And so,
[02:09:58] And so, um that's what's fun for me now is is
[02:10:00] um that's what's fun for me now is is getting with people like that and just
[02:10:02] getting with people like that and just giving them the whole game and sitting
[02:10:04] giving them the whole game and sitting back and watching him go to work. That's
[02:10:05] back and watching him go to work. That's That's what I love.
[02:10:06] That's what I love. >> So, these aren't just students or
[02:10:07] >> So, these aren't just students or mentees. They're they're kind of like
[02:10:09] mentees. They're they're kind of like business partners.
[02:10:10] business partners. >> Yeah, I don't have
[02:10:11] >> Yeah, I don't have >> of like they are business partners.
[02:10:12] >> of like they are business partners. >> The way I The way I structured GC
[02:10:14] >> The way I The way I structured GC Advising uh what it is now, like I
[02:10:16] Advising uh what it is now, like I started out with Government Cheeze,
[02:10:17] started out with Government Cheeze, which is the educational piece, but GC
[02:10:19] which is the educational piece, but GC Advising isn't just an educational
[02:10:21] Advising isn't just an educational program. You know, GC Advising houses
[02:10:24] program. You know, GC Advising houses the Government Cheeze educational
[02:10:25] the Government Cheeze educational platform, but GC Advising is a full
[02:10:28] platform, but GC Advising is a full advisory platform where we where we help
[02:10:31] advisory platform where we where we help um
[02:10:32] um people really scale and grow government
[02:10:34] people really scale and grow government contracting businesses. And so, I have
[02:10:36] contracting businesses. And so, I have people like him. They're not students,
[02:10:37] people like him. They're not students, they're partners. Yeah. Yeah.
[02:10:39] they're partners. Yeah. Yeah. >> I partner with them. When I do an
[02:10:40] >> I partner with them. When I do an acquisition with with a a mentee, we're
[02:10:42] acquisition with with a a mentee, we're true partners.
[02:10:44] true partners. We We I have a share in the business. I
[02:10:47] We We I have a share in the business. I have a management company that I
[02:10:48] have a management company that I created. And my management company comes
[02:10:50] created. And my management company comes in and we act as a um fractional COO.
[02:10:54] in and we act as a um fractional COO. And we basically manage the businesses
[02:10:56] And we basically manage the businesses with our mentees.
[02:10:58] with our mentees. And and and we help them grow and scale.
[02:11:00] And and and we help them grow and scale. So, I don't have I don't have students.
[02:11:02] So, I don't have I don't have students. I have I have partners. Wow. Yeah.
[02:11:05] I have I have partners. Wow. Yeah. That's dope. Yeah, no for sure. I love
[02:11:07] That's dope. Yeah, no for sure. I love it. I love it. All right, as we as we
[02:11:09] it. I love it. All right, as we as we wrap, man, so if if you check out the
[02:11:11] wrap, man, so if if you check out the show, man, we always do two things.
[02:11:12] show, man, we always do two things. Number one, we have to get a final
[02:11:14] Number one, we have to get a final thought from you. And you've been
[02:11:15] thought from you. And you've been dropping a whole bunch of final
[02:11:16] dropping a whole bunch of final thoughts, so I'm I'm see where you're
[02:11:17] thoughts, so I'm I'm see where you're going to go with this. But, um first you
[02:11:19] going to go with this. But, um first you got to let where where can people
[02:11:20] got to let where where can people connect with you directly? You know,
[02:11:22] connect with you directly? You know, where where do you like what social
[02:11:24] where where do you like what social media you on? Where can people follow
[02:11:26] media you on? Where can people follow you and so forth? Just drop that real
[02:11:27] you and so forth? Just drop that real quick.
[02:11:28] quick. >> Yeah, so socials uh YouTube uh YouTube
[02:11:30] >> Yeah, so socials uh YouTube uh YouTube is where I tell everybody to go. Okay.
[02:11:32] is where I tell everybody to go. Okay. >> reason I tell everybody to go to my
[02:11:33] >> reason I tell everybody to go to my YouTube is YouTube is where I'm able to
[02:11:35] YouTube is YouTube is where I'm able to give the game for free.
[02:11:37] give the game for free. So, before you spend a dime with
[02:11:38] So, before you spend a dime with anybody,
[02:11:39] anybody, go learn everything for free.
[02:11:41] go learn everything for free. Make sure that this is what you want to
[02:11:43] Make sure that this is what you want to do. Make sure that you can commit to 2
[02:11:44] do. Make sure that you can commit to 2 years and and all of that to it. So,
[02:11:46] years and and all of that to it. So, YouTube, everybody Government Cheeze uh
[02:11:48] YouTube, everybody Government Cheeze uh YouTube, go watch all the videos. I got
[02:11:50] YouTube, go watch all the videos. I got everything down there from how to
[02:11:51] everything down there from how to register for SAM, how to do your
[02:11:53] register for SAM, how to do your certifications, how to put together
[02:11:54] certifications, how to put together bids, how to do pricing like we talked
[02:11:56] bids, how to do pricing like we talked about. Everything's there. Uh
[02:11:58] about. Everything's there. Uh TikTok and Instagram, naturally, if you
[02:12:00] TikTok and Instagram, naturally, if you want them quick hits, TikTok and
[02:12:01] want them quick hits, TikTok and Instagram, same thing, Government
[02:12:02] Instagram, same thing, Government Cheeze. So, that's where I can be found
[02:12:04] Cheeze. So, that's where I can be found at. And then
[02:12:04] at. And then >> Website?
[02:12:05] >> Website? Uh what?
[02:12:08] Uh what? Oh.
[02:12:09] Oh. And then website is GC Advising uh
[02:12:12] And then website is GC Advising uh gcadvsing.com. gcadvsing.com. Okay, and
[02:12:15] gcadvsing.com. gcadvsing.com. Okay, and then last, man, final thought. What are
[02:12:17] then last, man, final thought. What are we going to leave the audience with,
[02:12:18] we going to leave the audience with, man?
[02:12:18] man? It could be anything. Entrepreneurial
[02:12:20] It could be anything. Entrepreneurial Entrepreneurial, spiritual, wherever you
[02:12:22] Entrepreneurial, spiritual, wherever you want to come from with it. Just a final
[02:12:24] want to come from with it. Just a final final word. My final word is uh
[02:12:31] I This is a good one. I I tell I tell
[02:12:33] I This is a good one. I I tell I tell people all the time, you're not scared
[02:12:36] people all the time, you're not scared of failure. You're scared of success.
[02:12:38] of failure. You're scared of success. So, I want everybody to think about
[02:12:40] So, I want everybody to think about that. We're going in We're in 2026 now.
[02:12:42] that. We're going in We're in 2026 now. It's a new year. Do things. Do not be
[02:12:45] It's a new year. Do things. Do not be afraid to succeed.
[02:12:47] afraid to succeed. People think that they're afraid to
[02:12:49] People think that they're afraid to fail, and they're not.
[02:12:51] fail, and they're not. You're not afraid to fail because you're
[02:12:52] You're not afraid to fail because you're used to failure, and you know what that
[02:12:54] used to failure, and you know what that smells like.
[02:12:55] smells like. You're afraid to succeed because you've
[02:12:57] You're afraid to succeed because you've never succeeded like you want to, and
[02:12:58] never succeeded like you want to, and you don't know anybody who has.
[02:13:00] you don't know anybody who has. Do not be afraid to succeed. Fail
[02:13:03] Do not be afraid to succeed. Fail forward. There's no failure in this game
[02:13:05] forward. There's no failure in this game at all. Do not be afraid to succeed. Go
[02:13:08] at all. Do not be afraid to succeed. Go out there and go get it, and it's there
[02:13:09] out there and go get it, and it's there for you.
[02:13:10] for you. That's a whole word, man. Hustle Fam,
[02:13:12] That's a whole word, man. Hustle Fam, Hustle Fam, you know what we do around
[02:13:14] Hustle Fam, you know what we do around this time. If you smell something
[02:13:16] this time. If you smell something burning, it's only a desire. Kevin, man,
[02:13:19] burning, it's only a desire. Kevin, man, bro, listen. Where have you been on my
[02:13:21] bro, listen. Where have you been on my life, man?
[02:13:22] life, man? >> [laughter]
[02:13:22] >> [laughter] >> Jesus, it's been too long, man. It was
[02:13:24] >> Jesus, it's been too long, man. It was It was such a pleasure having you here,
[02:13:26] It was such a pleasure having you here, bro. Like, you really put it all in
[02:13:28] bro. Like, you really put it all in perspective. Thank you for your
[02:13:29] perspective. Thank you for your transparency and just giving out so much
[02:13:31] transparency and just giving out so much information to the audience. And I hope
[02:13:33] information to the audience. And I hope you guys take this and actually
[02:13:35] you guys take this and actually implement and use it, man. And if you
[02:13:37] implement and use it, man. And if you need extra help, he's the man to go see.
[02:13:40] need extra help, he's the man to go see. Yes, sir. Hustle Fam,
[02:13:42] Yes, sir. Hustle Fam, we out.
[02:13:42] we out. >> All right, y'all. Listen, I'm happy to
[02:13:44] >> All right, y'all. Listen, I'm happy to announce that we finally launched our
[02:13:45] announce that we finally launched our YouTube memberships. Listen, if you want
[02:13:48] YouTube memberships. Listen, if you want to support Trucking Hustle for all the
[02:13:49] to support Trucking Hustle for all the hard work that we've been doing over the
[02:13:50] hard work that we've been doing over the past 5 years, this is where you need to
[02:13:53] past 5 years, this is where you need to be. Uh as a part of our memberships,
[02:13:55] be. Uh as a part of our memberships, number one, you'll get exclusive access
[02:13:57] number one, you'll get exclusive access to all of our archive content. Number
[02:14:00] to all of our archive content. Number two, we'll be doing at least one live
[02:14:02] two, we'll be doing at least one live webinar with one of the guests or
[02:14:04] webinar with one of the guests or somebody else from our network that you
[02:14:06] somebody else from our network that you love to continue to add value to you and
[02:14:08] love to continue to add value to you and your business. Third, we'll be having
[02:14:10] your business. Third, we'll be having exclusive behind-the-scenes content that
[02:14:12] exclusive behind-the-scenes content that we shoot and doesn't, you know, make the
[02:14:14] we shoot and doesn't, you know, make the final cut. So, make sure you go check it
[02:14:16] final cut. So, make sure you go check it out, get that subscription right now,
[02:14:18] out, get that subscription right now, and join us, man. C&H forever. Let's go.
[02:14:21] and join us, man. C&H forever. Let's go. All right, guys. If you love Trucking
[02:14:22] All right, guys. If you love Trucking Hustle and you love the interviews and
[02:14:23] Hustle and you love the interviews and information that we provide week to
[02:14:25] information that we provide week to week, make sure you like, share, and
[02:14:27] week, make sure you like, share, and subscribe to the channel. All right,
[02:14:28] subscribe to the channel. All right, Hustle Fam.